t: 01633 240080,  f: 01633 240081

24 Bridge Street, Newport NP20 4SF

Hospitality trades temporary reduction in VAT has expired

Source: HM Revenue & Customs | | 07/10/2021

The temporary reduced rate of 5% for hospitality, holiday accommodation and attractions that came into effect in July 2020 ended on 30 September 2021.

However, the government had previously decided that reverting to the standard rate would be too much for many businesses and had announced a further step before reverting the rate back to the standard rate.

This means that we now have a new reduced rate of 12.5% from 1 October 2021 that will be in effect until 31 March 2022 at which point it is expected that the rate will go back to the 20% standard rate.

Although many businesses had campaigned for the rate to remain at 5% at least there is still some temporary reduction to help the continuing recovery of the sector.

Affected businesses are advised to check that they have updated their billing and pricing software to provide for this change. There will also be increases in the VAT flat rate scheme percentages for catering services, hotel accommodation and pubs to accommodate this change.

If you need any help understanding how these changes will impact your VAT accounting, please get in touch.



 

Latest News

  • Self-Assessment filing deadlines

    21/10/2021 - More...

    The 2020-21 tax return deadline for submitting your paper Self-Assessment returns is 31 October 2021. The tax deadline for submitting online returns is 31 January 2022. Late

  • Claiming tariff quotas to reduce import duties

    21/10/2021 - More...

    Tariff quotas are a special mechanism for importing limited supplies of specific goods at a lower rate of customs duty than would normally apply. The quotas usually apply to

  • Transport restrictions eased

    21/10/2021 - More...

    The government has announced plans to introduce a temporary extension to road haulage cabotage rules to alleviate pressures with the supply chain due to lorry driver shortages and

Newsletter

With our newsletter, you automatically receive our latest news per e-mail and get access to the archive including advanced search options!

» Sign up for the newsletter
» Login

 

Copyright © 2021 Haasco Limited (Company registration 7030921). Registered to carry on audit work in the UK and regulated for a range of investment business activities by the Institute of Chartered Accountants in England and Wales (Firm C003118150). Indemnity insurer - Axis Speciality Europe SE (Policy 374997016)

Cookie Policy | Privacy Policy