Category Archives: VAT

VAT rates for hospitality sector due to increase from 1 April

Early in the COVID-19 pandemic, the Chancellor reduced the rates of VAT for the leisure and hospitality sector to just 5%. That reduced rate applied from 15 July 2020 until 30 September 2021 when the rate was increased to the current 12.5%. However, the rate is scheduled to revert to the normal 20% rate from…

Advisory fuel rates from 1 March 2019

HMRC, VAT

Company-owned vehicles HM Revenue and Customs have announced revised tax-free advisory fuel rates from 1 March 2019 which may be paid for business journeys in a car owned by the business.   Rates for the previous quarter is shown in brackets. Engine size Petrol Diesel LPG 1,400 cc or less 11p (12p) 7p (8p) 1,600 cc or…

Deposit/Cancellation Fees – new VAT treatment

New VAT treatment, hotel

Hoteliers are you ready! From 1st March 2019 the treatment of cancellation fees is changing.  Previously where a customer has paid a deposit for a room and then subsequently cancelled, you had been allowed to reclaim the output VAT on this deposit, since there would no longer be a supply of accommodation and therefore this…