Due to the pandemic, on 8 July 2020, the government announced a temporary 5% reduced rate of VAT for certain supplies relating to hospitality, hotel and holiday accommodation, and admission to certain attractions.
The reduced rate was initially introduced for a temporary period between 15 July 2020 and 12 January 2021 and was subsequently extended to 31 March 2021.
In the Budget 2021, the Chancellor announced that the 5% reduced rate would be extended again until 30 September 2021 and further that from 1 October 2021 until 31 March 2022, the temporarily reduced rate of 5% VAT will change to the new reduced rate of VAT of 12.5%.
The normal standard rate of 20% will now return on 1 April 2022.
Are you intending to pass on the saving to customers and if not, are you ensuring that you’re legally able to do that?
Don’t forget about pricing on your website, menus, etc.
Will your MTD compliance be compromised?
Have you set up your new 12.5% VAT rate on your software?
Can your systems cope with a VAT change in the middle of a VAT quarter?
Can you be sure you are claiming the correct VAT on your employee expenses?
Please contact Point Progress today and ask for more information on the MyExpenses Admin Service.
Employee Expenses Management made easier with MyExpenses.