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Mel’s COVID-19 Update: 9th July 2020
During COVID-19 I want to ensure that everyone is as up to date as possible with regards to Government changes and support that impacts businesses. Please note that this update is correct as of the date of sending (9th July 2020).
PLEASE IGNORE THIS UPDATE IF YOUR BUSINESS IS NOT IN THE HOSPITALITY AND TOURISM SECTOR.
Further to my update yesterday there is some important further information relating to the VAT reduced rate for hospitality and tourism sectors.
Firstly, to re-cap;
- VAT rate reduced from 20% to 5%
- Relates to food, and non alcoholic drinks, accommodation, admission to attractions
- The change comes into effect from 15 July 2020 and will finish on 12 January 2021
The main message that I am trying to convey here is that you need to charge vat on alcohol at 20% not 5%.
This is potentially going to be a nightmare if care is not taken. You need to ensure that you are charging VAT at the correct rates, change settings on tills and keep careful records and, of course, VAT returns are prepared correctly.
We are here to help you and we will be contacting clients but please pick the phone up or email in if you need any assistance with this.