Temporary Reduced Rate for Accommodation under FRS

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The revised FRS % for Hotels and Accommodation has been reduced to 0%.

If someone is in their first year of VAT registration, does the 1% discount still apply, effectively reducing the FRS rate to -1%?

Replies (3)

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RLI
By lionofludesch
15th Jul 2020 16:40

I vote yes.

Why not ?

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By Tim Vane
15th Jul 2020 17:18

Hmm. Tricky one. The legislation specifies reduce, not deduct. I am not sure that if you reduce 0% by 1 you can infer a negative. Still, no harm in trying.

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Replying to Tim Vane:
RLI
By lionofludesch
15th Jul 2020 17:23

Tim Vane wrote:

Hmm. Tricky one. The legislation specifies reduce, not deduct. I am not sure that if you reduce 0% by 1 you can infer a negative. Still, no harm in trying.

Entering the VAT in Box 4 ?

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