Specialist Tax News

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%
Pubs 6.5%