Changes to the temporary VAT rate for tourism and hospitality – what happens next and how you can make a VAT saving
What is the reduced rate of VAT? Last year, the Government introduced a temporary reduced rate of VAT to supplies of catering, holiday accommodation and admission to attractions (you can see our blog post on this here). The reduced rate of 5% therefore applies the tourism and hospitality sector with effect from 15th July 2020. […]
In the Budget in early March, Rishi Sunak announced that the VAT rate cut, from 20% to 5%, introduced in July 2020, which saw certain businesses working within the hospitality sector benefiting, was to be extended for six more months. What does the 5% VAT reduction apply to? The temporary reduction applies to businesses who […]
Since 1 January 2021, following the ending of the transition period, VAT is now payable on imports coming into the UK from anywhere in the world, including imports from the EU. There are a number of ways that payment of the import VAT can be managed by businesses. One option introduced by HMRC, which applies […]
The option to defer VAT payments between 20 March and 30 June last year was welcomed by many businesses as it freed up much-needed cash for them during the lockdown. In order to take advantage of this scheme, businesses either didn’t make the payment or they cancelled their direct debit to prevent the payment being taken automatically. […]
What can I reduce VAT on? A breakdown for businesses in hospitality, accommodation and the tourism industry
Last week, Rishi Sunak announced a whole host of measures to help boost the economy as we start to recover from the effects of the last few months. One of these measures is a temporary 15% cut to the rate of the VAT applied to certain supplies made in the hospitality, accommodation and tourism industry, […]
There are several existing schemes operated by HMRC that businesses may be able to take advantage of to help improve their cash flow during this difficult period.