UK HMRC Announces Further VAT Cuts for Hospitality Sector
Following a slew of recent rate changes to GB VAT, the Government has today announced a further temporary rate reduction to 5% for the hospitality sector.
This afternoon the UK Chancellor of the Exchequer, Rishi Sunak, has announced that there will be an additional set of temporary cuts for Value Added Tax (VAT) aimed at stimulating the hospitality sector.
Under his ‘Plan for Jobs’ update on 8th July 2020, the Chancellor has introduced a broad set of VAT changes for businesses operating within the hospitality sector, for the sale of both goods and services.
According to the official document, the temporary cuts will be in effect from 15 July 2020 until 12 January 2021, representing a whopping six-month window where businesses and individuals can avail of the rate reductions.
The document states that:
the reduced (5%) rate of VAT will apply to supplies of food and non-alcoholic drinks from restaurants, pubs, bars, cafés and similar premises across the UK.
In addition to the sale of food and drink:
the reduced (5%) rate of VAT will apply to supplies of accommodation and admission to attractions across the UK.
Further guidance is expected to be published by the HMRC over the coming days.
How Innovate Tax Can Help
We’ve put together a support hours mini-bundle to help you to correctly account for Covid-19 indirect tax changes. We will:
- help you to ensure that the temporary rates are correctly applied within your ERP system
- put plans in place to revert back to the original tax rates after the change window expires
We’re keeping it simple. This is just a little extra cushion of support for businesses that’ll be able to access our world-class team of functional indirect tax consultants during what’s proven to be a very volatile time across the world.
Don’t forget, things are changing all the time with new announcements, including tax relief measures, happening globally on a daily basis – and they’re going to be here for some months to come yet…
So, whether or not you’re already an Innovate Tax client, this new mini-bundle will help your business react to tax rate changes and ensure you’re not missing out.