HMRC had in the past lowered the VAT rate (5%) for hospitality, holiday accommodation and attractions businesses. This privilege has ended on 30 September 2021.
However, the government had previously decided that reverting to the standard rate would be too much for many businesses and had announced a further step before reverting the rate back to the standard rate.
Affected businesses are advised to check that they have updated their billing and pricing software to provide for this change. There will also be increases in the VAT flat rate scheme percentages for catering services, hotel accommodation and pubs to accommodate this change.
If you need any help understanding how these changes will impact your VAT accounting, please get in touch.
If you are looking to know about the impact of new rules on your business, feel free to contact us.