In July 2020, the government introduced a 5% reduced rate of VAT for businesses which supply hospitality, hotel and holiday accommodation and entry to certain tourist attractions. This was done to support businesses who were seen as the most severely impacted by Covid restrictions.
The reduced rate for hospitality covers a range of activities including restaurants, cafes, catering etc. It would also include most client and staff events as well as weddings, parties etc.
From 1 October 2021 the reduced rate will increase to 12.5% and from 1 April 2022 the rate will revert to 20%.
Source: way2vat.com
