Standard VAT Scheme:
Currently VAT for the Hospitality and Catering sector is reduced to 5%. This was introduced by the Government last summer to help businesses seriously affected by Covid-19.
From the 1st October this rate is set to increase, not immediately up to 20% but via a steppingstone of 12.5%. This new rate is valid until March 2022 and we will remind you to increase your percentage back up to 20% nearer the time.
Flat Rate VAT
If you are on the Flat Rate Scheme you will be aware that in the Hospitality and Catering industries, HMRC reduced the percentages last summer to aid businesses affected by Covid-19.
However these are set to increase on 1st October, again via a steppingstone percentage which is valid until 31st March 2022. At this point percentages will revert to pre Covid rates and we will remind you of this nearer the time.
New rates from 1st October 2021:
Catering, Restaurants and Takeaways – 8.5%
Hotels and Accommodation – 5.5%
If you have any queries or you would like help altering your VAT rates in QuickBooks, please do not hesitate to get in touch!