As we mentioned in our budget blog post the 5% VAT rate that was brought in in 2020 is going to be extended. The broad details are:
- The temporary reduced rate of VAT of 5% will be extended until 30 September 2021
- There will be a new rate of 12.5% from 1 October 2021 to 31 March 2022
- The supplies to which the temporary reduced rates will apply remain the same.
As before the sectors affected included are:
- Hospitality
- Hotel and holiday accommodation
- Admissions to certain attractions
And also as before businesses need to be aware of changes to the Flat Rate VAT Scheme and the Tour Operators Margin Scheme.
Full details are here: https://www.gov.uk/guidance/vat-reduced-rate-for-hospitality-holiday-accommodation-and-attractions
If you have any questions please give us a call or leave us a message on our contacts page: https://www.sutherlandblack.co.uk/contact/
