Share this content

retrospective claim VAT rate 5% hospitality

Can the reduced rate be claimed for previous VAT returns without unjust enrichment charge

Didn't find your answer?

VAT returns have been submitted covering the period from 15 July 2020 to date when reduced hospitality rate 5% was not applied in VAT return calculation

Can these returns be amended subsequently without a charge being made of unjust enrichment.

Replies (4)

Please login or register to join the discussion.

By Les Howard
15th Sep 2021 13:07

It is difficult to predict whether or not HMRC will argue unjust enrichment. I would make the claim and then see what happens. Hopefully you will be able to include the adjustment on a VAT Return - HMRC's error correction team have a huge backlog!

Thanks (2)
By Paul Crowley
15th Sep 2021 13:50

Agree Les
Prices are usually set gross
The reduction was intended to help out the industry, not their clients

Thanks (2)
Jason Croke
By Jason Croke
15th Sep 2021 15:02

The whole point of the reduced rate was to keep the menu prices the same but to keep more income as a result of the lower VAT rate. So an adjustment now should be fine. If the adjustment is more than £10k than would need voluntary disclosure to HMRC.

Thanks (1)
By lionofludesch
15th Sep 2021 17:53


Having said that, Mrs Lion and myself had a coffee at the local garden centre last month and were charged 20%.

Thanks (0)
Share this content