VAT Changes in the UK

Name: Eyekiller
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July 15, 2020 | News

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As part of the government's plan to help restart the economy and support businesses most impacted as a result of the coronavirus pandemic the VAT change will see support offered to dedicated sectors within the UK.

The UK VAT rate on hospitality, holiday accommodation and attractions is reducing from 20% to 5%, from 15 July 2020 to 12 January 2021.

The cut applies to food and non-alcoholic drinks as well as accommodation and admission to attractions across the UK.

In your Accounting solution, this means that some transactions that you would normally record at 20% VAT may now be at a reduced rate of 5% VAT. There is already a 5% VAT rate in Accounting called Lower Rate, and in most cases you just need to change affected transactions from Standard to Lower Rate.

Below is some guidance for Sage 200cloud, Sage 200 Standard, and Sage 1000 customers. If you are a Pinnacle customer and require further help, simply email the Pinnacle Support Team or call 0345 345 9999.