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End of temporary reduced VAT rate for leisure and hospitality

The temporary reduction of the VAT rate that applies to the hospitality, hotel and holiday accommodation sectors will end and the VAT rate will return to 20% from 1 April 2022.  The rate is currently 12.5% having increased from 5% on 1 October 2021. 

All businesses claiming VAT back on applicable expenses need to be aware of the increased VAT rate.

Written 14 January 2022.