The hospitality and leisure industry were particularly hard hit by the effects of the Covid-19 pandemic and associated lockdowns. To help the industry recover they benefitted from a reduced rate of VAT of 5% from 15 July 2020 until 30 September 2021.
As a temporary measure, a new reduced rate of VAT of 12.5% applies from 1 October 2021 until 31 March 2022.
The rate will revert to the standard rate of 20% from 1 April 2022.
Supplies benefitting from the reduced rate
The following supplies, which benefitted from the reduced rate of 5% until 30 September 2021, will also benefit from the new reduced rate of 12.5% from 1 October 2021 to 31 March 2022.
Where an admission to an attraction is within the existing cultural VAT exemption, this takes precedence over the reduced rate.
Partner note: FA 2021, s. 93; the Value Added Tax (Reduced Rate) (Hospitality and Leisure) Order 2020 (SI 2020/728).
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