Recently the chancellor announced a temporary cut in the VAT rate for certain types of businesses in the hospitality and tourism sector.
The standard 20% rate is being reduced to 5% from 15 July 2020 until 12 January 2021.
Xero has the capabilities to apply the changes, all you need to do is select the appropriate VAT rate for affected supplies as instructed by HMRC. Please remember to make the change in your accounting software!
The reduced 5% VAT rate applies to:
• Supplies of food and non-alcoholic drinks from restaurants, pubs, bars, cafés and similar premises across the UK.
• Supplies of accommodation and admission to attractions across the UK.
For more information on tax default tax rates in Xero, view the support article (https://central.xero.com/s/article/Default-tax-rates-UK)
How will the VAT cut help your business?
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