Last week, the government announced that VAT would be cut from 20 per cent to five per cent for hotels, restaurants and some attractions. The hope is that the businesses affected will chose to pass

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But firms AREN'T obliged to pass on the VAT cut to customers by dropping their prices. A temporary VAT cut would be most effective as a stimulus: i) when we are confident social distancing measures will continue to be eased and that these measures are no longer limiting supply; ii) when firms that would be affected by the cut are able to accommodate additional demand and are likely to respond by passing a VAT cut onto prices; iii) when uncertainty and fear of the virus is lower Lifestyle VAT cut: The UK companies lowering prices for customers - including McDonald’s, Costa and Nando’s The measures will make eating out and going on holiday cheaper The Chancellor has announced a temporary cut in the VAT rate to 5% for certain supplies in the leisure and tourism sector. The aim of the change is to boost the economy and encourage consumer spending in the sector. However it will undoubtedly cause some transitional headaches for businesses that have to change their VAT accounting. 13 July 2020 by Emma Lake and James Stagg. Just days after the industry welcomed the job-saving potential of the chancellor's VAT cut, operators have expressed concerns that promises of price cuts could undermine its impact.

The VAT rate will be reduced from 20% to 5% from 15  21 Sep 2020 “Due to a temporary tax reduction, the cost of your standard plan is now €11.80 a month,” the mail it sent to us said. “After the regular tax rate  15 Jul 2020 McDonald's, KFC and Wetherspoon among chains to slash prices after government VAT cut High street cafe and restaurant chains including  16 Jul 2020 On Wednesday, July 15, the rate of VAT on the hospitality and tourism sector was cut from 20 per cent down to just five per cent by the Chancellor  In its Summer Economic Statement on 8 July 2020, the government announced a number of VAT measures including a temporary reduction to the Standard  24 Sep 2020 As of 24 September, the VAT cut will remain in place until 31 March 2021.

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McDonald's drops prices on classic menu items after VAT cut Nina Siena. 15/07/2020. UK parks become rubbish tips as crowds take advantage of hot weather and lockdown easing.

To subtract VAT from the product price they would: Take the product price (£9.60) and divide by 1.2 (1. + VAT Percentage) = £8; After the above calculation, the shopkeeper would then take the original product price (£9.60) and subtract the divided sum (£8) = £1.60; Take the product price (£9.60) and divide by 1.2 (1. + VAT Percentage) = £8 Temporary VAT cut will provide boost to only some retailers, analysts say Deutsche Bank said the reversal in VAT rate will likely see prices jump by more than the drop Rishi Sunak A £4bn cut in VAT has come into force, allowing firms in the food, drink and hospitality sectors to slash prices. Nando's, Pret A Manger and McDonald's are among firms to promise reductions after The VAT rate cut means firms can cut prices for customers, with the Government giving examples of potential savings of £12.50 per night on a £100 hotel room, or a discount of £2.12 on a £16.99 takeaway pizza.

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This has led to many big chains such as KFC, McDonald's, Costa, and Nando's slashing prices – so we've canvassed 21 big eateries, coffee shops and pubs to see where you'll save, and if so, by how much. The expectation was that the VAT cut to 15.5 percent from 16.5%, which came into effect on July 1, would lower prices by 0.86% and benefit the working poor and consumers in general. This cut in the VAT rate from the standard rate of 20% will have effect from 15 July 2020 to 31 March 2021. He revealed that from July 15, the rate of VAT for the two sectors was going to be cut from 20 percent to just five present. The new rate will last for six months, ending on January 12, 2021. In 2008, following the financial crash, the government introduced a temporary cut in the rate of VAT to 15%. The rate cut lasted from 1 December 2008 to 31 December 2009 and cost the government £ 2020-07-15 · Pret a Manger is to pass on the VAT cut to customers from Wednesday for all hot drinks and from Friday on hot food.