Reduced rate of VAT for hospitality, holiday accommodation and attractions comes to an end!
8th April 2022
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% to help them through the Coronavirus pandemic.
The scheme had been extended multiple times, and from 1 October 2021 a new rate of 12.5% was introduced to slowly ease businesses back in to using the 20% rate.
This scheme came to an end on the 31 March 2022, so from 1 April 2022 businesses in the hospitality, holiday accommodation and attractions industry should use 20% standard rated VAT on these supplies.
If you need support changing your VAT rate on your accounting software, please get in touch with your usual Whitings LLP contact.
Disclaimer - All information in this post was correct at time of writing.
