The VAT reductions introduced in 2021 helped many businesses stay afloat during the pandemic. However, the current VAT rate – 12.5% will come to an end on 31 March 2022 across the UK.
From 1 April 2022 – VAT will return to its standard 20% rate.
Those affected by this change will largely include hospitality and food businesses such as:
· Take-away services
This may be a set-back for some but hopefully it will only be temporary. The latest news suggests the UK is nearing the end of its pandemic stage and will probably enter endemic stage during 2022. Endemic in its simplest terms, means that Covid will still be around much like the ‘flu – mostly seasonal with the greatest effects felt by the most vulnerable.
Businesses that continue to ride the tide could see some sense of normality return this year. As restrictions lessen and confidence in the herd immunity approach grows, people are likely to resume the social activities they undertook e.g. regularly eating out as they did pre-pandemic. The Nutrient Gap is optimistic this will be the case, remaining available to offer advice and guidance to help your business meet the standards any new food legislation brings.
Remember your business still has a general duty of care under health and safety legislation to ensure customers and staff stay safe as far as possible. Check you are adhering to the latest food legislation guidance.
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