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 ...
Would you like to know more?
If anything I've written in this blog post resonates with you and you'd like to discover more about the 5% VAT rate cut for hospitality businesses, call me on 01908 774320, leave a comment below or click here to ping over an email and let's see how I can help you.
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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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