The reduced rate of VAT offered to the hospitality sector as part of the governments business support during Covid. The current reduced rate of 5% changes to 12.5% from 1st October 2021. This rate will be available until 31st March 2022. When it is envisaged that the rate will return to the standard rate.

The supplies to which the temporary reduced rates will apply remain the same, that is supplies relating to hospitality, hotel and holiday accommodation and admissions to certain attractions.