As you may be aware, the VAT rate is going back up, from 15% to 17.5% with effect from 1 January 2010 – that is, from 00.01 on New Year’s morning. So do pubs and clubs and hotels have to ‘cash up’ when they hear the bells? Should they take a “Z” reading in the midst of Auld Land Syne?
The Financial Secretary to the Treasury stated that HMRC will allow “a few hours grace” to businesses such as pubs and clubs, to allow them to charge 15% “for a session that goes beyond midnight into the early hours of 1 January.”
Needless to say, I was unable to find anything about this on HMRC website, nor was I inclined to phone the National VAT Advice Helpline for confirmation. I’ll settle for the wording within Hansard instead.