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retrospective claim VAT rate 5% hospitality

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

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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.

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chips_at_mattersey
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!

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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

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Jason Croke
By Jason Croke
15th Sep 2021 15:02

+1
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.

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RLI
By lionofludesch
15th Sep 2021 17:53

Agree.

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

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