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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Oct- 2021 -13 OctoberPubs and Bars
Marston’s FY21 sales return to pre-pandemic level
Marston’s has revealed that for the full-year ending 2 October 2021, trading has been at 94% of pre-Covid levels and benefited from the temporary VAT reduction on food and non-alcoholic drink sales. Total pub sales were at £402m, representing 78% of last year, and reflected the “significant” disruption to trading…
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13 OctoberRestaurants
Almost 1,000 hospitality venues have closed since July, report finds
Britain’s number of licensed premises fell by 980 between July, when the market fully reopened, and September 2021, according to the new market recovery monitor from CGA and Alix Partners. The monitor indicates that small businesses have borne the brunt of closures, with independently run pubs, restaurants, bars and other…
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12 OctoberRestaurants
Hospitality coalition calls on PM to keep VAT at 12.5%
A coalition of the country’s hospitality and tourism trade and membership bodies has called on the prime minister to keep VAT low for businesses in their sectors. Co-ordinated by UK Hospitality, the letter argues that keeping VAT at its current rate of 12.5% for these sectors will help to “accelerate…
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7 OctoberTrade Associations
UKH calls for lower VAT rate in new campaign
UK Hospitality has announced a new campaign #VATsEnough which is aimed at calling on the Chancellor Rishi Sunak to make the 12.5% VAT rate permanent for hospitality and tourism. While the Treasury’s decision last year to reduce VAT for these sectors helped many venues survive the crisis, under current plans…
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4 OctoberCoronavirus
UKH calls on Government for support amid jobs crisis
UKHospitality has proposed a programme of co-investment to the government to create jobs and increase growth after “harsh” trading restrictions have impacted the sector. The sector has revealed it is facing issues including rent demands and an increase in VAT and has said a “package” of post-pandemic support is “essential”…
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1 OctoberTrade Associations
UK trade bodies call for lower rate of VAT, amid 12.5% rise
UK Hospitality alongside other trade associations have joined forces to call on the chancellor, Rishi Sunak, to introduce a permanent lower rate of VAT. Under treasury plans, hospitality and tourism VAT is expected to rise to 12.5% from today (1 October) and will return to its pre-pandemic level of 20%…
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Sep- 2021 -22 SeptemberPubs and Bars
UKH calls for permanent hospitality VAT cut
UK Hospitality chief executive Kate Nicholls called for additional Government support to help safeguard the sector’s recovery and rebuild resilience in the form of a permanently lower VAT for hospitality and tourism. It comes as UK Hospitality’s annual conference was undertaken under the theme of “recovery and beyond”, where it…
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21 SeptemberBusiness
Hospitality business optimism rises, CGA reveals
Some seven in 10 (70%) restaurant, pub and bar leaders have expressed their optimism about their businesses’ prospects for the next 12 months, according to the latest Business Confidence Survey from CGA. The survey showed that nearly three in five (58%) leaders felt optimistic about prospects for the general market…
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15 SeptemberGovernment
Inflation sees biggest jump on record in August
UK inflation saw its largest jump since records began in August, as the rate spiked to 3.2% in a 12 month period, up from 2% year-on-year in July. Despite the rate soaring past the Government’s 2% inflation target, the Office for National Statistics’ (ONS) claimed that this “is likely to…
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3 SeptemberRestaurants
Hospitality owners report staff shortages as vacancies rise
Hospitality owners are reportedly facing staff shortages after a lack of response to job advertisements, according to the BBC. In the UK there were 102,000 vacancies in the sector from April to June 2021 – a rise of 12.1% compared to the same period in 2019. According to the BBC,…
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