VAT Rate Cuts for Hospitality Industry

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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.

Rate Updates with MyExpenses

Claiming back the correct amount of VAT on business expenses can be a bit complicated. If you are using our MyExpenses software to manage staff expenses, did you know that we also offer an administration service?

As part of this service, we will update all necessary VAT rates on relevant categories, meaning you can be sure your VAT claim is accurate.

There are many other time saving benefits you can achieve from this service. To find out more, please visit our website, or contact us.

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