Chancellor Rishi Sunak has announced a temporary reduced rate of value added tax (VAT) on hospitality and tourism from 20% to 5%. The new cut will apply to eat-in and hot takeaway food and non-alcoholic drinks between 15 July 2020 and 12 January 2021.
These changes are being brought in as an urgent response to the Coronavirus (COVID-19) pandemic to support businesses severely affected by forced closures and social distancing measures.
If you are a club that supplies food or non-alcoholic drinks through a bar or café then you are currently required to charge VAT at the standard rate of 20%. However, the reduced rate means that when you make these supplies between 15 July 2020 and 12 January 2021, you will only need to charge 5%.
Where your business is eligible you can retain the saving for the benefit of the club or you may choose to pass it or a proportion of it onto your members/guests.
Further details about the reduced VAT rate can be found here.
If your sailing club has any queries regarding VAT, please contact the RYA Legal Team on 023 8060 4223 or email@example.com. You can also find further guidance on the Coronavirus related financial assistance available here.