Our VAT experts are able to advise you on all aspects of your hospitality and leisure business.
Below you will find just some of the ways we can help you to save money:
- Hotel accommodation is subject to VAT at the standard rate but any stay in excess of 28 days is subject to VAT on a reduced value basis. This is equivalent to a reduced rate of VAT and can be calculated in a number of ways. Our experienced team can help you to obtain the best possible reduced rates
- There are a number of different rules with regard to accounting for VAT on deposits and in some cases no VAT has to be accounted for. We are able to conduct a review for you which could save you money
- Hoteliers and other businesses that provide conference facilities may not need to charge VAT on the room hire element of the facilities provided. This can prove to be a significant saving for businesses that cannot recover the VAT that they are charged. Hoteliers should consider this option carefully. The 24 hr and 8 hr delegate rates can be reduced by a significant amount if VAT is not charged on the room hire element but particular care should be taken to fully understand the VAT implications of this. Members of our VAT team have successfully contended with HMRC that the 24hr delegate rates should be partly attributable to room hire and not subject to VAT in particular circumstances.
We have also been successful in contending that the supply of toasted baguettes, toasted bagels, sausage rolls and paninis are not subject to VAT when supplied for takeaway. We have helped many clients reclaim significant amounts of money because food supplied for takeaway, despite being above the ambient air temperature, can attract the zero-rate of VAT.
Hot food supplied for takeaway is liable to VAT at 17½% but what if the heating is a necessary consequence to provide a fresh toasted or crisp product? Particularly if the supplier is unconcerned as to whether the product is eaten whilst still above the ambient air temperature or when completely cool.
Our recent successes in zero-rating toasted baguettes, toasted bagels, sausage rolls and other food items can dramatically increase the profit of a business.
If you have a VAT issue please contact us. We would be happy to discuss our VAT expertise with you and how we may be able to assist your business.