Temporary Reduction in VAT

Last week, the Chancellor, Rachel Reeves announced a temporary reduction in VAT from 20% to 5% from when schools break up in Scotland at the end of June until children return to classrooms in England, Wales and Northern Ireland on 1 September.

The discount, which will be up to businesses to pass on to customers, will apply to children’s entry to cinemas, soft play and theatres, as well as children’s meals in restaurants and cafes.

The VAT cut is part of government’s announcements aimed at easing cost of living pressures.

If we handle the VAT returns for your business then adjustments will be made to ensure the correct liability is paid for this temporary relief.