The following Value Added Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
In response to the pressures on businesses caused by the coronavirus (COVID-19) crisis, a temporary reduced rate was introduced for certain supplies in the hospitality sector from 15 July 2020. This temporary reduced rate currently runs to 31 March 2022 (having been extended on multiple occasions). However, from 1 October 2021 to 31 March 2022, a reduced rate of 12.5% replaces the 5% rate. Following this incremental increase in the VAT rate, it is expected that the standard rate will once again apply from 1 April 2022.
Broadly speaking, the temporary reduced rate covers the following categories of supply:
catering and hot takeaway food
sleeping accommodation in hotels and similar, campsites etc
admission fees charged to enter attractions that are not eligible for the cultural exemption
VATA 1994, Sch 9, Group 1, paras (f), (g); SI 2020/728; VATA 1994, Sch 7A, Groups 14–16; SI 2020/728; SI 2020/1413; De Voil Indirect Tax Service V4.423
This guidance note explores what is covered by the temporary reduced rate and considers various other challenges and opportunities associated with the temporary measure for businesses.
This section should be read in conjunction with the Food ― catering guidance note.
The temporary reduced rate applies to supplies of:
hot and cold food for consumption on the premises on which they are supplied (including food and drink supplied from vending machines)
hot and cold non-alcoholic beverages for consumption on the premises on which they are supplied
hot takeaway food for consumption off the premises on which they are supplied (including hot takeaway food that is delivered ― see ATT ― VAT: temporary reduced rate for hospitality, holiday accommodation and attractions)
hot takeaway non-alcoholic beverages for consumption off the premises on which they are supplied
The reduced rate does not cover the following, which remain standard-rated:
supplies of food and drink that are supplied for consumption
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
A time to pay arrangement, which may also be referred to as TTP in practice, is a negotiated agreement between HMRC and the taxpayer to allow for tax to be paid after its due date.The guidance in this note applies to individuals under self assessment and companies paying corporation tax. It does not
OutlineWhen a property investor grants a lease, potentially this could be done on the basis that the tenant pays a premium for the initial grant of the lease, in addition to also paying rent over the term of the lease. In the absence of specific legislation to the contrary, such premiums would all
Migration of tax credits to universal creditNew claims for tax credits are no longer possible as they have been replaced by the universal credit for all claimants. Existing claimants will continue to receive tax credits until they are migrated to the universal credit system. Migration will take
IntroductionA pension scheme that is not a registered scheme is known as an EFRBS. Since April 6 2006, the distinction between what were approved and unapproved pension schemes has been replaced with a distinction between registered and unregistered schemes.The position as it applies with effect
To view our latest tax guidance content, sign in to Tolley Guidance or register for a free trial.