In July 2020 the government announced that VAT registered business who operate in the hospitality and tourism industry could use a temporary 5% reduced rate of VAT on certain supplies compared to the standard 20%.
The objective of this legislation was to support businesses in this sector during the Coronavirus pandemic and assist with the reopening of the economy.
The scheme was due to end on 12 January 2021. It was then extended to 31 March 2021.
The government then announced in the budget the reduced rate of VAT would continue until 30 September 2021 and from 1 October 2021 to 31 March 2022 a new rate of 12.5% would be introduced.
This scheme has benefited many of our clients. For more details please see the link below or get in touch with your usual Whiting & Partners contact.