Changes to VAT rates from 1 April 2022:
Many in the hospitality sector were hoping that the Chancellor would extend the 12.5% reduced rate that has applied since 1 October 2021 but, as scheduled, the rate has reverted to 20% from 1 April 2022.
The increase applies to hospitality, visitor attractions, catering services including restaurants and takeaways.
This has a consequential effect on the VAT Flat Rate Scheme percentages from 1 April 2022 onwards as set out below:
| Type of Business |
From 1 April 2022 |
| Catering services including restaurants and takeaways |
12.5% |
| Hotel or accommodation |
10.5% |
| Pubs |
6.5% |
Do you need further guidance on the changing VAT rates?
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If you want to learn more about how the team can help or simply want some tax advice from a trusted accountant, please contact us by filling in a contact form or calling 0161 962 1855.