Why 12.5 vat

Might the government be persuaded more readily to reduce the VAT rate on certain items to Obvious candidates would be costly green measures not covered by existing VAT reliefs, such as installing double glazing and buying an electric car.

Several sectors who had given up lobbying for a rate change in the past may now wish to think about this again. If you would like to discuss this further please get in touch with your usual Crowe contact, Rob Marchant or Rob Warne. Preparing for the Suppliers Anyone supplying these goods and services will need to prepare their tills and accounting systems to cope with these VAT changes. Customers If you can recover VAT on items such as employee hotel trips and subsistence, you will need to change your systems to ensure that the correct VAT amount is picked-up after 1 October Individuals It is an old adage that the best cure for post-holiday blues is to book another holiday, but this may also make financial sense this year.

Wider implications? Considering the accuracy of Customs audits and when to contemplate challenging them. New Plastic Packaging Tax from April Intended to encourage the use of recycled plastic packaging materials. Fourth rate. The absence of anti-forestalling legislation is intended to help the hospitality industry with cash flow.

Businesses that left the flat rate scheme in July might want to rejoin in October or April next year. Only subscribers may read the full article. Remember me. Issue: Download the exclusive Vertex free report here.

New queries. This was initially for a period of 6 months but was extended as the pandemic continued to hit these businesses hard. Most software providers accounting and point of sale systems will introduce the new rate.

Member Article Get ready for the new A quick reminder of the scope of the reduced rate of VAT Hospitality — food and non-alcoholic beverages consumed on the premises, hot takeaway food and hot takeaway non-alcoholic drinks Accommodation — hotels and similar establishments, caravan pitches, tent pitches, holiday cottages and similar Attractions — cinemas, theatres, amusement parks, zoos, exhibitions and other similar attractions.

Explore these topics Tax Accounting Finance National.