HOSPITALITY businesses will have to contend with several changes from 1st October, with the VAT rate rising to 12.5% and the UK Government’s Coronavirus Job Retention (furlough) scheme coming to an end.
The VAT rate for hospitality was temporarily cut to 5% last year, with the reduction extended earlier this year.
From 1st October the rate is rising to 12.5%, before returning to 20% on 1st April, 2022.
Businesses will have to ensure that the change in the VAT rate is incorporated in their pricing and records.
Meanwhile, businesses have until 14th October to submit claims for any staff furloughed through the UK Government’s Coronavirus Job Retention Scheme in the month of September.