• Farrell & Farrell

F&F UK TAX TIPS

Is it too early to think about booking the Staff Christmas dinner?


The 5% VAT rate for the hospitality sector is to end on 30 September 2021 and to increase to 12.5% on 1 October 2021. This 12.5% will subsequently rise to 20% on 1 April 2022.


Did you know that if you book and pay for your Staff Christmas dinner before 1 October 2021 then there could be a 7.5% UK VAT saving?


Interestingly when these VAT rate rule changes came into force the Government did not introduce anti-forestalling legislation. This means that if any hospitality bookings are booked and paid before 1 October 2021 then the 5% rate can apply to the advance payment even though the supply is not until after 1 October when the 12.5% rate applies.


Please note that this post is generic in nature therefore always seek specific professional advice. Farrell & Farrell do not accept any liability for any direct or indirect loss arising from reliance placed herein.




13 views0 comments

Recent Posts

See All

In response to the Bank of England interest rate increase to 3.0%, HMRC’s late payment interest rates will also increase with effect from 22 November 2022 as follows: - late payment interest rate — 4.