Hospitality sector – VAT rates increasing to 20% from 1 April 2022

Since 15 July 2020 the sector has benefitted from a reduced rate of VAT (5% until 30 September 2021 and 12.5% until 31 March 2022) for some of their goods and services.

This rate applied to certain supplies made by those running restaurants, cafés, pubs, hotel/holiday accommodation as well as admissions to attractions.

From 1 April 2022 this temporary VAT rate is being removed and the supplies will revert back to the standard rate of 20%.

We urge all our clients to ensure all their till systems and websites are updated to make sure the correct rate of VAT is charged from this date.

The VAT chargeable on certain food and drink is a complex area and historically we have found many clients are not aware of what goods they may charge VAT at 0%. If you are unsure and would like some guidance, please get in touch and speak to one of our team on 01303 850992.