Back in March, the Chancellor announced the annual UK budget with a focus on helping business get back on its feet due to the economic impact of the pandemic.
The hospitality industry was one of the most affected and the government took different measures to support this industry in particular.
- The reduced VAT rate of 5% specifically for the tourism and hospitality industry will be ending 30 September 2021.
- From October 1, it will increase to 12.5% for 6 months.
- It will then increase further to its original 20% VAT rate from 1 April 2022.
It is the first time since 1979 that 4 different VAT rates are in operation in the UK. AIMS can help your business measure the new VAT rate and how to operate and identify other goods or services that may fall outside the different rates. We are always happy to discuss ways to support your business or the possible impact of different VAT rates on your business.
Contact your local AIMS accountant to find out more information about supporting your business.