Vat Reduction

[Maydup]

Since the governement reduced VAT on hospitality and holiday accomodation in the UK, should I expect to see a reduction on my UK self catering accomodation invoice for a week in June?

I had paid a deposit last year when the booking was moved on a year. The balance is now due for June 2021, but it quite clearly states that the total due is inclusive of 20% VAT. Am I right to ask for that to be reduced to 5% or does the provider expect to be the sole beneficiary of the reduction in tax?

[bednobs]

yes

[bednobs]

sorry, yes to the first q no to the second

[gulliver1]

I Would think most people in the UK would just be glad to get away from it all after being in lockdown, and not at all bothered to expect a 5% vat reduction , but just glad the provider is still in business.

[bednobs]

its 15% not 5%

[gulliver1]

15% or 5% I would still be happy they have survived and still in business.

[bednobs]

well thats great for you.
As i understand it though, the business does not benefit from VAT no matter what rate it's charged at though

[Buenchico]

See here to find out how the accommodation provider is meant to decide upon the correct rate of VAT to apply to your booking:
https://www.eqaccountants.co.uk/a-guide-to-reduced-vat-for-holiday-accommodation-providers/

[Maydup]

It is 5% rather than 15%, and the question isnt about morals but about correct calculations. Personally I dont want the booking agent for example to pocket my £100 difference when the government has introduced this reduction to help support the industry and they are blatently over charging.

[Maydup]

Thanks Buenchico, thats really helpful. I'll study it and accept the result eitherway if I know its fair and correct.

[bednobs]

sorry i was talking to gulliver - and i meant it's a 15% reduction, not 5% reduction as he stated

[Maydup]

Sorry too Bednobs, and thanks for being on my side!

[Maydup]

Buenchico - just noticed your article was written in Dec 2020 and the reduced rate has since been extended, but based on that chart and projecting it forward I think I am due a reduction.