Chancellor, Rishi Sunak announced yesterday that the VAT in restaurants, hotels and cinemas will be cut from 20% to 5%
This tax cut has been introduced as part of the mini-budget to help the economy get back on its feet following the Coronavirus lockdown.
The reduced rate will take place from Wednesday 15th July until 12th January 2021, and will apply to sales of food (eat-in and hot takeaway), non-alcoholic drinks and accommodation in hotels and B&B’s. Admission to attractions such as theme parks and cinemas will also be affected.
HMRC are expected to issue more detailed guidance regarding the reduced VAT in the coming days.
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