The 5% VAT Rate Cut For Hospitality Businesses
A welcome announcement ...
Posted by Roger Eddowes on 13/08/2020 @ 8:00AM
After Chancellor Rishi Sunak's Summer Statement, HMRC issued new guidance on the temporary 5% VAT rate cut for the hospitality sector. This includes holiday accommodation and attractions too ...
The 5% VAT rate cut is very welcome news for any hospitality business!
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It is very welcome news for any hospitality business that was deeply affected by the recent Coronavirus lockdown. Many are still suffering with the very slowly relaxing guidelines the Government announced, so a 5% VAT rate cut will help.
The 5% reduced rate of VAT applies to:
food and non-alcoholic beverages for on-premises consumption or for takeaway
hot takeaway non-alcoholic beverages
sleeping accommodation in hotels or similar establishments
pitch fees for caravans and tents, and associated facilities
The 5% VAT rate cut also applies to admissions to the following:
Where admission to these attractions is covered by the existing cultural exemption, the cultural exemption will always take precedence.
VAT rules for the hospitality sector are already complicated with a number of different VAT regimes available. HMRC has updated much of its guidance to offer more detailed information on the application of the 5% VAT rate cut.
Making changes at such short notice can be very difficult for any size of business so Essendon Accounts & Tax are always here to help.
Until next time ...
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About Roger Eddowes ...
Roger trained at Edward Thomas Peirson & Sons in Market Harborough before working at Hartwell & Co, followed by Chancery, as a partner. He started Essendon Accounts and Tax with Helen Beaumont in 2014 as a general practitioner with a hands-on approach.
Roger loves getting his hands dirty, working with emerging, small-to-medium and family businesses to ensure they receive the best possible accountancy advice. Roger utilises an extensive network of business contacts to leverage the best guidance and practical solutions.
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