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% |
Need more information?
Do you need further guidance on the changing VAT rates? We offer a wide range of services which are unique to your business. Our team of chartered accountants have a wealth of experience in a broad range of sectors, including the hospitality sector. Our team work hard to ensure they create smart and effective tax-efficient solutions for start-ups to optimise growth and help them succeed. If you want to learn more about how the team can help or simply want some start-up advice from a trusted accountant do hesitate to contact us. For more information please do hesitate to contact us on 0161 962 1855. Alternatively you can email us using the form below and we will contact you as soon as possible.
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