The Book-keepers Forum (BKF)

Post Info TOPIC: Temporary Reduced VAT Rate


Member

Status: Offline
Posts: 10
Date:
Temporary Reduced VAT Rate


Hi,

It's been a little while since I last posted anything on here.

I have a client who runs a hotel and has some self-catering holiday accommodation. I am a bit confused about the temporary reduced VAT rate and was hoping for some guidance.

My client has a company, who every now and then book a room for an employee to stay in for 2-3 nights. Food & Drink are not included in the room price. From what I have read on HMRC and my understanding being - as the accommodation is booked by the company and not the individual staying then it is the Standard 20% VAT that is charged, however, for the holiday lets for a few nights this would be at the Temporary Reduced VAT rate (again food & drink are not included).

With regards to the food & drink - food and non alcoholic drinks should be charged at the reduced rate for both the Hotel & Holiday Accommodation.

Please can you let me know if my thinking around this is correct as their accountant has said it should all be charged at 5% except for Alcoholic Drinks.

Thanks



__________________


Master Book-keeper

Status: Offline
Posts: 3579
Date:

Hi Sheena

Can you point to the regulations that say your client can't apply the reduced rate VAT to a Company booking? I've not got anyone affected on my books but my understanding is it applies to all bookings so I think the accountant is right.



__________________

John

Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.



Member

Status: Offline
Posts: 10
Date:

Hi John

Thanks for your reply.

This is the link to the page I was reading. Section 3

www.gov.uk/guidance/hotels-holiday-accommodation-and-vat-notice-7093

__________________


Newbie

Status: Offline
Posts: 3
Date:

The link is not working



__________________


Member

Status: Offline
Posts: 10
Date:


Hi

the link is working for me, however try this one.


www.gov.uk/government/publications/reduced-rate-of-vat-for-hospitality-holiday-accommodation-and-attractions


__________________


Master Book-keeper

Status: Offline
Posts: 3579
Date:

Sheena wrote:

Hi John

Thanks for your reply.

This is the link to the page I was reading. Section 3

www.gov.uk/guidance/hotels-holiday-accommodation-and-vat-notice-7093


Hi Sheena

I don't think the long stay guest rule applies in your situation. Accommodation is for only 2-3 days at a time. The bit about Companies and individuals relates to Companies booking regular repeated short term booking eg Airlines for Cabin crew, then the reduced value rate doesn't apply. The reduced value rate (where no VAT on sleeping accomodation is charged after the 28th day) is not the same as the reduced VAT rate.



__________________

John

Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.



Member

Status: Offline
Posts: 10
Date:

Hi John

Thanks for your advice and sorry for not replying sooner.

__________________


Master Book-keeper

Status: Offline
Posts: 3579
Date:

No problem Sheena



__________________

John

Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.

Page 1 of 1  sorted by
 
Quick Reply

Please log in to post quick replies.

Tweet this page Post to Digg Post to Del.icio.us
Members Login
Username 
 
Password 
    Remember Me  

2007-2019 The Book-keepers Forum (BKF). All Rights Reserved. The Book-keepers Forum (BKF) is a trading division of Bookcert Ltd. Registered in England Company Number 05782923. 2 Laurel House, 1 Station Rd, Worle, Weston-super-Mare, North Somerset, BS22 6AR, United Kingdom. The Book-keepers Forum and BKF are trademarks of Bookcert Ltd. This forum is a discussion forum only. There will usually be more than one opinion to any question and any posting should not be viewed as a definitive solution. No responsibility for loss occasioned to any person acting or refraining from action as a result of any posting on this site is accepted by the contributors or The Book-keepers Forum. In all cases, appropriate professional advice should be sought before making a decision. We reserve the right to remove any postings which are offensive, libellous, self-promoting or engaged in covert marketing. We will not notify users of removals. The views expressed in the forum posts are those of the individual and do not necessary reflect or agree with those of The Book-keepers Forum. Any offensive or unsuitable posts will be removed by the moderators. Any reader of this forum can request for a post to be looked into by sending an email to: info@bookcert.co.uk.

Privacy & Cookie Policy  About