- More than 800 UK hospitality businesses are urging the government to cut VAT for the sector, arguing a lower rate would help prevent closures, job losses, and high street decline.
- The #VATsTheProblem campaign is calling for a 10% VAT rate for hospitality, to bring the UK closer to the European average.
- The sector says the current 20% VAT rate is especially burdensome because labour costs are a major expense and VAT cannot be reclaimed on staff costs.
- The appeal comes alongside pressure for wider tax relief for pubs, after the government announced a 20% cut in business rates for pubs, clubs, and live music venues in its first week in office.
- Separately, the government said it will work with publicans on reforms to the pubs code and lease arrangements, including more freedom for tenants and potential longer-term agreements.
Source: theguardian.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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