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A temporary reduction in VAT for hospitality businesses worst hit by the pandemic came to an end today. VAT – the tax paid when buying goods or services – was reduced from 20% to 5% in July 2020 but will now rise to 12.5%, before returning to pre-pandemic levels in April. Rebecca Willers, who runs Shepreth Wildlife Park in Cambridgeshire, says the VAT cut was a “huge lifeline” which enabled the venue to cut admission fees to encourage more visitors when it reopened in April. However, she says it will now “have to bear the brunt” of the increase, as she doesn’t want to put off customers by upping prices over winter. You can read more from businesses affected by the change here.

Source: BBC

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