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 UK government’s VAT deferral new payment scheme for settling VAT payments deferred between 20 March and 30 June 2020 due to COVID-19 is now open for businesses to voluntarily opt-in.
HMRC has updated its guidance explaining how to settle VAT payments deferred between 20 March and 30 June 2020 due to COVID-19.
Following a resurgence in the number of COVID-19 cases in the UK, Rishi Sunak yesterday announced further VAT measures to support the economy in his Winter Economy Plan statement.
On 8 July Rishi Sunak announced a targeted temporary VAT rate cut for the UK hospitality and tourism sectors. HMRC has now published further guidance on the measure, available here.
In his Plan for Jobs speech today Rishi Sunak, the Chancellor of the Exchequer, announced a temporary VAT rate cut for the UK hospitality and tourism sectors to aid recovery following the COVID-19 pandemic.