Changes to the 5% reduced rate for the hospitality sector
Back in July 2020 the VAT rate for the hospitality sector was reduced to 5% for –
- Hot takeaway food
The reduced rate applies to food, accommodation and non-alcoholic beverages.
From 1 October 2021 the 5% rate will increase to 12.5%, this will apply until 31 March 2022 reverting to the standard rate after this date.
Some things to consider: –
- The need to distinguish the different VAT rates applying to alcoholic and non-alcoholic drinks.
- Software and till updates necessary to facilitate the change. Best to contact providers as soon as possible to understand what changes are needed.
If you have any questions or would like to speak to our team about your situation, then please get in touch! You can call on 01243 782 423 or head to our contact form!
We also update our YouTube Channel regularly with new content, see here: Lewis Brownlee YouTube channel