An independent report commissioned by HMRC has been published on the impact of MTD for VAT on businesses.
The VAT rate that applies to certain supplies of hospitality, hotel and holiday accommodation, and admission to certain attractions changes on 1 October 2021. The current 5% rate for these supplies will be replaced by the introduction of a new reduced rate of VAT of 12.5% which will remain in effect until 31 March 2022.
The government is introducing new rules from 1 April 2022 which require large businesses to notify HMRC when they take an uncertain tax position. The taxes within scope of the requirement to notify are Corporation Tax, Income Tax (when returned in a Partnership or PAYE return), and VAT.
HMRC has published Revenue and Customs Brief 11 (2021): VAT liability of Coronavirus (COVID-19) testing services, explaining the rules for the VAT treatment of COVID-19 testing services.