Millhouses Accountancy - Sheffield
VAT is the tax collected by businesses on the items and services they sell and it’s then passed the HMRC. Therefore, the reduction in VAT should mean a reduction in the price that consumers pay for these good & services.
Alcoholic beverages are excluded from this VAT cut. However, it will apply to things like all food and (non-alcoholic) drinks from restaurants, pubs, and bars. To takeaways; cinemas; zoos; accommodation; the admission price for attractions, and cafés etc. throughout the UK.
This tax cut is expected to save households around £160 a year on average if businesses pass it on in full. However, this does rely on businesses passing these savings on to customers.
If you’re in the tourism or hospitality industries and would like some help adjusting your accounting processes to the new VAT rate, get in touch
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