VAT support

On Thursday 24 September 2020 the Chancellor of the Exchequer Rishi Sunak presented the Winter Economy Plan to Parliament.

The summary below is based on what we know at 25/09/20

https://www.gov.uk/government/topical-events/winter-economic-plan 

 

VAT deferral ‘New Payment Scheme’

Earlier in the year the government gave businesses the option to defer the payment of VAT due in the period March to June 2020. 

Rather than paying in full at the end of March 2021, businesses will be able to choose to make 11 equal instalments over 2021-22.

All businesses which took advantage of the VAT deferral can use the New Payment Scheme. Businesses will need to opt in, but all are eligible.

HMRC will put in place an opt-in process in early 2021. 

Help for the hospitality and tourism sectors through a continuation of the reduction in VAT  

VAT was cut to 5% for hospitality and tourism businesses earlier in the year. This temporary reduced rate was originally due to end 12 Jan 2020 and is being extended until 31 March 2021. 

It will continue to apply to supplies of food and non-alcoholic drinks from restaurants, pubs, bars, cafés and similar premises, supplies of accommodation and admission to attractions across the UK.