VAT
We report on VAT policy and its implications for the UK foodservice and hospitality sector, including rate changes, government decisions, lobbying campaigns, and compliance challenges. From reduced VAT measures during the pandemic to the sector’s push for permanent reform, this brings together essential updates that affect margins, pricing, and profitability. Whether you’re a small independent or a multi-site operator, understanding VAT is critical to managing costs and planning for sustainable growth. Our coverage is written to support chefs, operators, F&B leaders, and finance teams navigating a complex and evolving tax landscape.
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Mar- 2022 -30 MarchPubs and Bars
Hospitality welcomes extended Platinum Jubilee licensing hours
The hospitality sector has welcomed the government’s confirmation that licenced premises will be able to extend their opening hours to 1am on the Thursday, Friday and Saturday evenings of the special bank holiday weekend (2 to 5 June). UKHospitality applauded the temporary change in licensing rules for England and Wales,…
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30 MarchFood and Drink
Hospitality sees city-centre recovery as sales and footfall rise
Hospitality businesses are starting to build sales momentum in Britain’s big cities after sales increased by 3% with a “steady” return of workers, shoppers and visitors, according to the latest ‘Top Cities Vibrancy Report’ from CGA and Wireless Social. Across the cities, sales increased by 3% on the equivalent pre-pandemic…
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25 MarchPubs and Bars
Drinks sales hit record for 2022 amid good weather and St Patrick’s Day
Out-of-home drinks sales were 7% up on pre-pandemic levels last week, according to the CGA’s latest Drinks Recovery Tracker, in part thanks to good weather, St Patrick’s Day and the Six Nations. The figure, for average drinks sales by value in Britain’s managed pubs, bars and restaurants over the week…
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24 MarchGovernment
Return to 20% VAT a ‘massive missed opportunity’, UKH says
A return to 20% VAT for the hospitality and tourism industry will be met with disappointment by thousands of hospitality businesses, UKHospitality has said. In addition, UKH has said that ending the 12.5% rate for hospitality would “jeopardise jobs and restrict the sector’s efforts to stifle price rises for consumers,…
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23 MarchGovernment
Spring Statement: Chancellor raises NI threshold to £12,570
The chancellor has outlined a series of measures to help combat the rising cost of living in his latest spring statement, including increasing the national insurance threshold by £3,000. Speaking in parliament today (23 March), Rishi Sunak began his speech by warning it is yet unclear what the impact of…
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22 MarchNews
Energy costs force hospitality firms to raise prices and cut hours
“Soaring” energy costs are forcing some hospitality businesses to raise their prices and cut trading hours, according to a new survey by four leading hospitality trade bodies. The joint poll by trade organisations UKHospitality, the British Institute of Innkeeping (BII), the British Beer and Pub Association (BBPA) and Hospitality Ulster…
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18 MarchAnalysis
13 Spring Statement predictions
With both the global and UK economies coming under pressure from the rising cost of living crisis, which has only been exacerbated by Russia’s invasion of Ukraine, all eyes will be on the chancellor when he makes his Spring Statement speech on 23 March 2022. Here, Christy Wilson, tax associate…
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17 MarchGovernment
Parliamentary inquiry recommends VAT remains at 12.5%
An inquiry by a group of MPs has recommended that VAT for the hospitality and tourism sectors stays at 12.5% beyond March. The All Party Parliamentary Group (APPG) for Hospitality and Tourism, concluded that VAT should not return to 20% this April, citing UKHospitality data revealing that the lower rate…
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16 MarchRestaurants
UKH welcome ‘positive news’ from ONS figures, but warn industry ‘remains fragile’
UKH has said the latest figures from ONS are “positive news” for the industry, after it reported that jobs in the hospitality sector are up 252,000 in the last 12 months, and unemployment has dropped to 4%, below pre-pandemic levels. However, it warned that the sector “remains fragile”, and renewed…
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10 MarchTrade Associations
UK public support maintaining 12.5% VAT, UKH says
There is strong support amongst the public for VAT to remain at its current rate of 12.5% beyond April, according to a new study by YouGov commissioned by UKHospitality. Excluding those who didn’t give a view, only 21% believed the Government should stick with its current plan to increase VAT…
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