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%|