|In response to the coronavirus pandemic, the government introduced a temporary 5% reduced rate of VAT for certain supplies relating to hospitality, hotel and holiday accommodation and admission to certain attractions.
From 1st October 2021 this VAT rate will be increasing to 12.5%, which will remain in place until 31st March 2022, at which point the VAT rate will revert to the normal rate of 20%.
TIP: You can still take advantage of this reduced VAT rate by encouraging your customers to pay deposits and pre-payments before the end of the month. These deposits and prepayments taken before 30th September will only be liable to 5% VAT, even if the business supply does not take place until after 1st October.
Please contact us if you have any questions at all.