Temporary 5% VAT rate for food, accommodation and attractions now in place

From Wednesday 15 July 2020 to 12 January 2021, to support businesses and jobs in the hospitality sector, the reduced 5 per cent rate of VAT will apply to supplies of food and non-alcoholic drinks from restaurants, pubs, bars, cafés and similar premises across the UK.

The 5 per cent reduced rate of VAT will also apply to supplies of accommodation and admission to attractions across the UK and will also apply between 15 July 2020 to 12 January 2021.

Further guidance on the scope of this relief will be published by HMRC, but due to the short notice of this change businesses should start planning straight away for changes to their accounting software, invoicing and prices.  Please contact us if you require assistance in getting ready for the changes.

Contact your usual Beavis Morgan Partner for advice and assistance. Our experts are available to guide you through the tax maze and help you with bespoke solutions to ensure that you and your business are as tax efficient as possible.

 

Leave Your Comment

Your email address will not be published.*