5% VAT from Wednesday – hospitality and leisure

VAT: reduced rate for hospitality, holiday accommodation and attractions

10th July 2020

Clients should stop to have a look at the new reduced VAT rate from Wednesday 15th July.  Whilst most affected businesses will be aware of this, the HMRC guidance may provide many with some comfort on how to plan for the change over the weekend:

https://www.gov.uk/guidance/vat-reduced-rate-for-hospitality-holiday-accommodation-and-attractions

We will be interested to see if this 5% rate sees people reduce their prices or if the primary benefit is to the businesses involved by way of some additional margin, much needed as they recovery from the lockdown period.

Questions on the scheme can be raised with your usual office contact or with our VAT manager, Helen Goodwin.

 

 

Switch to our mobile site