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Good news for the catering and holiday accommodation sectors

HMRC have finally updated their VAT flat rate percentages for the businesses mostly affected by the Coronavirus pandemic.

  • Reduced rates will apply from 15th July 2020 to 12th January 2021.
  • Catering services including restaurants and takeaways rate changed from 12.5% to 4.5%
  • Hotel or holiday accommodation from 10% to 0%
  • Pubs from 6.5% to 1%

The guidance can be found here: