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.