Changing From 1st October 2021
To help hospitality, holiday accommodation and attraction businesses transition back to the 20% standard VAT rate, the Chancellor announced in the 2021 Budget a 12.5% VAT rate which will replace the reduced rate of 5% VAT from 1st October 2021 to 31 March 2022.
From 1 April 2022 the 20% standard rate will apply.
HMRC have updated the flat rate percentage to take account of the new reduced 12.5% for VAT as follows:
Catering 8.5% interim rate (previously 4.5%)
Hotels 5.5% interim rate (previously 0%)
Pubs 4% interim rate (previously 1%)
If this rate change will impact your business please ensure that your till systems and accounting software is ready for the change on 1st October 2021.
Follow the link below for Quickbooks guidance on how to prepare for the change.
If you require any further assistance, please do not hesitate to get in touch. Email your client manager or call us today on 01284 755956 / 01953 438450
