Temporary 5% reduced rate of VAT ends 30 September 2021

From 30 September 2021 the 5% reduced rate of VAT for certain supplies within the hospitality and leisure sector will cease. A new rate of 12.5% will then be in place until 31 March 2022.

VAT rate supporting the hospitality & leisure industry

With the impact of COVID-19 taking its toll on the hospitality, hotel and holiday accommodation sector in 2020, the government introduced the temporary 5% reduced rate of VAT to supplies for the sector in July 2020.

This relief was due to end in January 2021. However, it was extended until March 2021 at which point it was announced during the budget that the 5% rate would last until 30 September 2021.

This is a reminder to all applicable that the new rate of 12.5% will apply from 1 October 2021 – 31 March 2022.

McKenzies accountancy resources

If you feel you would benefit from the support of an accounting firm then do contact our team of accounts. Our advisory accounting services provide business owners with financial forecasting and budgeting support to help achieve business goals. Our team of accountants work closely with you to prepare a budget against a business plan this includes a forecast to help keep you on track to reach your financial goal.

Contact our Accountants in Oxted.