VAT cuts and ‘Eat Out to Help Out’ scheme announced09/07/2020
Chancellor Rishi Sunak is to cut VAT on hospitality as part of a £30bn plan to prevent mass unemployment as the economy is hit by coronavirus.
VAT will be cut on food, accommodation and attractions from 20% to 5% from next Wednesday 15th July and will apply to eat-in or hot takeaway food and non-alcoholic drinks from restaurants, cafes, pubs, accommodation in hotels, B&Bs, campsites and caravan sites as well as cinemas, theme parks and zoos.
While this is a welcome announcement, 0% VAT would have been better news for the hospitality sector as a whole.
An ‘Eat Out to Help Out’ discount was also announced – Meals eaten at any participating business, Monday to Wednesday, will be 50% off in August, up to a maximum discount of £10 per head for everyone, including children.
Businesses will need to register and can do so through a website, which will open on Monday 13th July. Registrations will close on 31st August.
Further offical guidance on the Eat Out Help out scheme is below. It should be noted that agents can’t register for operators https://www.gov.uk/government/publications/get-more-information-about-the-eat-out-to-help-out-scheme
We will post further information as soon as we have it. In the meanwhile, if you need any advice on this, or any other hospitality related legal matter, please contact Matt Foster on 0191 281 6151 or email email@example.com.