Chancellor Rishi Sunak yesterday announced that there will be VAT cut on hospitality as a plan to prevent unemployment.
Vat on Food, Accommodation, Hospitality and Attractions will reduce from 20% to 5%. The hope is that this will help to increase the number of people travelling within the UK. The cut will be applicable from Wednesday 15th July to January 12th 2021.
The 15% reduction will mean that, for the next 6 months, VAT on tourism businesses will be lower than other countries such as France (10%), Spain (10%) and Greece (13%).
This will help encourage people to dine out and holiday in the UK as movement around the UK increases and to boost our economy. This will be welcomed as all of our seven offices are in rural areas, which are a hot spot for tourism. Many of our clients have businesses within this sector and the past few months have been a particularly worrying time, with business being forced to close down.
However this is a step in the right direction for everyone working within this sector. We wish everyone all the best for opening their doors.
For further information on this, visit the CLA website by clicking the link below.
http://elinks.cla.org.uk/m/1/85496993/p1-b20190-bfb3823446dd4ef3b51928aac46d45e3/5/611/5806c0b9-8609-4ebd-bacb-f1762acf3393