The reduced VAT rate for hospitality, holiday accommodation and attractions will change on October 1, 2021.
The reduced rate was brought in by the government to support businesses and jobs in the hospitality sector.
The reduced 5% rate of VAT will continue to apply to supplies of food and non-alcoholic drinks from restaurants, pubs, bars, cafés and similar premises across the UK until September 31, 2021.
The 5% reduced rate of VAT will also continue to apply to supplies of accommodation and admission to attractions across the UK.
From October 1 until March 31, 2022 the rate will be set at 12.5% and will then revert to 20% from April 1, 2022.
“It’s important to make a note of the VAT rate from October 1,” said Melanie Tomkins, tax manager at Ellis & Co Chartered Accountants and Business Advisers.
“The rate will still remain low at 12.5 % until March next year, before reverting back to a rate of 20% in April 2022.”
For further information on this or any other tax matter, contact Melanie on 01244 343504.
Ellis & Co Chartered Accountants and Business Advisers, Chester & Wrexham - 01244 343504, firstname.lastname@example.org