Since 15 July 2020 businesses in the hospitality sector have been benefitting from a temporary reduction in the rate of VAT chargeable on certain services including meals in restaurants and pubs, holiday accommodation and admission to attractions such as theatres.

Previously, VAT was chargeable at the main rate of 20% and this is set to return in April 2022. To ease businesses back to the higher rate an interim rate of 12.5% will apply for six months from 1 October 2021.