VAT Rates in the Leisure and Hospitality Sector
No extension has been granted to the leisure and hospitality sector for use of the reduced 12.5% VAT rate on eligible supplies including food, non-alcoholic beverages and hotel and holiday accommodation.
Notify Option To Tax Land And Buildings Within 30 Days
If you are notifying HMRC of a decision to opt to tax land and buildings, you are normally required to notify HMRC within 30 days. The 30 day deadline was temporarily extended to 90 days to help businesses and agents during the pandemic, but that temporary extension has now ended for decisions made from 1 August 2021 onwards.
Accounting For Import VAT On Your VAT Return
HMRC have recently updated their guidance on accounting for VAT on goods imported from outside the UK which, since Brexit, includes the European Union.
5% Rate On Tourism And Hospitality Ends 30 September
The temporary 5% VAT rate that has applied to supplies made in the tourism and hospitality sector since the start of the pandemic comes to an end at the end of September. The rate then increases to 12.5% from 1 October until 31 March 2022 when it reverts to the standard rate.
Advisory Fuel Rate For Company Cars
These are the suggested reimbursement rates for employees’ private mileage using their company car from 1 March 2021.
Freeport Zones
Following the UK’s departure from the EU, the government intend to establish new Freeports as a means to boost trade, jobs and investment across areas of the UK.
VAT Reduced Rate Extended
The reduced 5% rate of VAT for goods and services supplied by the tourism and hospitality sector has been extended to 30 September 2021. To help support businesses further there will be a transitional rate of 12.5% from 1 October to 31 March 2022 with the standard rate of 20% applying from 1 April 2022.
VAT Deferral New Payment Scheme
Businesses that deferred VAT payments last year can join the new scheme to pay it in smaller monthly instalments.
If you deferred VAT payments due between 20 March 2020 and 30 June 2020 and still have payments to make, you can: Pay the deferred amount in full, on or before 31 March 2021; or join the VAT deferral new payment scheme – the online service opened on 23 February 2021 and is open until 21 June 2021
VAT: Reduced Rate For Hospitality, Holiday Accommodation And Attractions
Guidance has been updated to reflect the extension of the VAT reduced rate for tourism and hospitality from 12 January to 31 March 2021. The government made an announcement on 8 July 2020 allowing VAT registered businesses to apply a temporary 5% reduced rate of VAT to certain supplies.
VAT Deferred Due To Coronavirus
If you deferred VAT between 20 March and 30 June 2020 and still have payments to make, you can pay the deferred VAT in full on or before 31 March 2021; opt into the VAT deferral new payment scheme when it launches in 2021 or contact HMRC if you need more help to pay.
