C-19 Grant funding for business
C-19 Time to pay agreement
C-19 Loan Funding
C-19 VAT Deferred Payments
C-19 Business rates
C-19 Company Directors & Shareholders
C-19 IR35 & Off-payroll working
C-19 Insolvency & Directors
C-19 Self-employment income support scheme (SEISS)
C-19 Landlords & tenants
C-19 Late payment interest rate
C-19 Reduced rate VAT
C-19 Deferring Income Tax payments
C-19 Working from home
C-19 Future Fund loan scheme
C-19 Recovery Loan Scheme
C-19 Job Support Scheme - on hold
C-19 Job Retention Bonus - on hold
C-19 Restart Grant Scheme opened
Employer-provided PPE & testing
C-19 Test & trace/isolation support
COVID-19: Coronavirus Reduced rate VAT - Updated: 14 April 2021
COVID-19 Reduced rate VAT.
The temporary cut to the rate of VAT on food, accommodation and entry fees to attractions from 20% to 5%, introduced on 15 July 2020, is extended by Budget 2021 until 30 September 2021.
The reduction is one of a number of additional measures announced to support the economy as the COVID-19 pandemic continues to affect individuals and businesses.
Summer 2020 measures
VAT on food and non-alcoholic drinks
From 15 July 2020 to 12 January 2021, to support businesses and jobs in the hospitality sector:
VAT on accommodation and attractions
From 15 July 2020 to 12 January 2021, a 5% rate of VAT will apply to supplies of:
In both cases where the Flat Rate Scheme (FRS) applies the relevant FRS rate will also be temporarily reduced.
Useful guides on this topic
Summer Economic Update: At glance
Chancellor of the Exchequer, Rishi Sunak, made his update on Wednesday 8 July 2020. We outline his new measures designed to assist in reviving jobs and the economy following the outbreak of the Coronavirus.
This tracker covers measures announced by the government to support individuals and businesses, as we get through COVID-19.
COVID-19 VAT payment deferral measures for VAT registered business.
Food: Catering and takeaway
There is sometimes confusion as to how food is treated for VAT purposes. If the food is purchased from a supermarket, one rule may apply. If the same food is bought from a café a different rule could apply.
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