The Platinum Jubilee weekend is expected to lead to a bumper boost in VAT receipts through increased sales at Britain’s pubs as celebrations get in full swing.
The extended Bank Holiday weekend is predicted to provide a huge impact on sales across the British hospitality sector as people take advantage of the four-day weekend, from Thursday 2 June to Sunday 5 June.
In a bid to get the nation celebrating, UK pubs will see operating hours extended, with many venues expected to stay open until 1am.
The celebration of the Queen’s 70 years on the throne will see more than eight million additional pints sold in UK pubs, it has been predicted.
The figures, from Real Business Rescue, could lead to an average of £720.10 extra revenue per pub.
This is expected to bring in £29 million into the nation’s coffers, through VAT and duty, according to the British Beer and Pub Association.
With sales in line to boom, it’s vital for businesses to keep on track of their VAT obligations to take the stress out of the process.
What is the VAT rate for hospitality businesses?
VAT in the hospitality and tourism industry currently stands at 20 per cent. It returned to this rate in April 2022, after being cut by the Government to as low as five per cent during the pandemic to help the sector survive and recover.
Is your business compliant with Making Tax Digital?
The rules around the rollout of Making Tax Digital for VAT changed in April when the regime was extended to all VAT registered organisations, including those below the threshold that voluntarily registered.
They must follow the same rules that organisations currently within the regime follow, including using HMRC-compliant software to report and record VAT information quarterly.
Businesses/organisations need to implement systems that can report and record information each quarter within the rules set out by HMRC. The software must be able to:
· Keep records in a digital form
· Preserve digital records in a digital form
· Create a VAT or tax return from the digital records held in functional compatible software and provide HMRC with this information digitally
· Provide HMRC with VAT and tax data voluntarily
· Receive information from HMRC via the API platform.
They must ensure that they continue to submit this information each quarter and produce an annual return as well.
With businesses hoping to make a boost in profits over the Jubilee Bank Holiday weekend, it is a vital time to ensure the VAT process is working effectively and to the rules.
Do you need advice on VAT and Making Tax Digital? We can help you, simply contact our team today.