HOSPITALITY VAT INCREASE
ACCOUNTANTS IN MANCHESTER
You may remember in the chaos of last year (2020) that the Chancellor Rishi Sunak temporarily reduced the Standard Rate of VAT from 20% to 5% for the hospitality sector.
This was done to encourage people to eat out at restaurants and serve as a boost for the hospitality industry which had been negatively impacted by the pandemic financially.
But, this reduction was never forever. In his latest budget the Chancellor extended the VAT reduction to the 30th September 2021.
This date is now upon us.
From Friday 1st October 2021, the hospitality sector will see a VAT increase from the reduced 5% to 12.5%.
The VAT will eventually return to the normal 20% by 31st March 2021.
What does the Hospitality VAT Increase mean?
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