The UK government is not planning to extend VAT relief measures aimed at supporting the hospitality sector. UK hospitality sector VAT had been cut from 20% to 5% to provide a lifeline to the industry amid Covid-related social distancing.
“The relief comes at a significant cost, and while the government keeps taxes under review, it has no current plans to extend it further,” Treasury Minister Jake Norman said in response to a parliamentary question.
The VAT relief measures had already been extended once and will remain in effect until 31 March 2021.
However, hospitality industry groups had been lobbying for a further VAT relief. Lobbyists call attention in particular to strain on SMEs in the hospitality sector caused by social distancing.
Source: vatglobal.com
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