TEMPORARY REDUCED RATE OF VAT FOR HOSPITALITY, HOLIDAY ACCOMMODATION AND ATTRACTIONS

The cut in the standard VAT rate of 20% to a temporary rate of 5% came into effect on 15 July. This is in relation to certain supplies of hospitality, hotel and holiday accommodation, and admissions to certain attractions, and is in place until 12 January 2021.

Please note that this does not affect supplies of alcoholic beverages, therefore if you have mixed supplies of, for instance, food and alcohol, then you will need to have a system of identifying and recording the relevant supplies for VAT purposes.

Most of the accounting software providers have issued guidance on how to deal with this within their systems. If you have any queries regarding this or are unsure whether supplies you make will be covered by this temporary cut then please contact us on info@four-m.co.uk