VAT Rate Changes
The UK VAT rate on hospitality, holiday accommodation and attractions is reducing from 20% to 5%, from 15 July 2020 to 12 January 2021.
The cut applies to food and non-alcoholic drinks as well as accommodation and admission to attractions across the UK.
In your Accounting solution, this means that some transactions that you would normally record at 20% VAT may now be at a reduced rate of 5% VAT. There is already a 5% VAT rate in Accounting called Lower Rate, and in most cases you just need to change affected transactions from Standard to Lower Rate.
For detailed information about what’s included, see the government support page: www.gov.co.uk
If you are still unsure whether your transactions should be at the reduced rate, you need to check with your accountant or HMRC.
What do I need to check?
Follow the link below for a comprehensive table containing summarises of the different areas you might need to update in Accounting. If you think an area applies to your business, follow the link in the ‘area’ column for further information.
This article provides general rather than specific guidance to assist all of our customers. We always do our best to make sure that the information is correct but as it’s general guidance, no guarantees can be made concerning its suitability for your particular needs. The information is valid at the time of publishing and is provided without any warranty of any kind, express or implied. You should take professional advice if you require specific guidance on your individual circumstances, for example to ensure that the results obtained from using our software comply with statutory or regulatory requirements.
For VAT, customs and excise and duties enquiries you should call the HM Revenue and Customs (HMRC) National Advice Service Helpline on 0300 200 3700, contact your local HMRC office or visit their website at www.hmrc.gov.uk. In no event will we be liable to you for any direct, indirect, consequential or incidental loss or damage arising out of or in connection with your use of the information provided.
We’re delighted to advise that our updates to support our Professional & Extra Online customers with the UK transition from the EU are now available. Professional is available for download, Extra Online was auto-updated.
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