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Hospitality VAT - a reminder of the reduced rates

Reduced VAT rate for hospitality

 

The 5% reduced rate on hospitality has been extended to 30 September 2021 and the from 1 October 2021 to 31 March 2022 this rises to 12.5%, before going back to the normal 20% from 1 April 2022.

 

For restaurants and cafes ‘Food and drink’ includes all food consumed on premises, and all non-alcoholic drinks

 

For takeaway food it only applies to hot food, and non-alcoholic drinks.

 

Alcoholic drinks are still subject to 20% VAT.

 

For accommodation virtually all hotel / holiday let accommodation is subject to the reduced rates noted above.

 

The link for the reduced rate guidance is here https://www.gov.uk/guidance/vat-reduced-rate-for-hospitality-holiday-accommodation-and-attractions

 

For admissions to attractions, where usually 20% VAT applies, this also falls under the VAT reduced rate scheme.

 

A link to what is classed as ‘an attraction’ is on this link https://www.gov.uk/guidance/vat-on-admission-charges-to-attractions

 


This information is provided free of charge and in good faith, without acceptance of any future liability arising from any action or in-action by any recipient or reader.Please feel free to share this information as widely as possible and encourage people, who might benefit from these updates, to register at www.asquithand.co.uk for future updates.

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