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Changes to VAT for Hospitality

Published: 11/10/2021 By Hannah McCormack

From 1st October the VAT rate increased from 5% to 12.5% for businesses within the hospitality, holiday accommodation and attractions sectors. The increased rate will run until 31st March 2022 and then will return to its normal standard rate of 20% as of 1st April 2022.

The Government had reduced the rate of VAT to 5% within the tourism and hospitality sectors back in July 2020 in order to support businesses during the pandemic.
 
More information on the VAT rate increase can be found on the gov.uk website here