Many in the hospitality sector were hoping that the Chancellor would extend the 12.5% reduced rate that has applied since 1 October 2021 but, as scheduled, the rate has reverted to 20% from 1 April 2022.
The increase applies to hospitality, visitor attractions, catering services including restaurants and takeaways.
This has a consequential effect on the VAT Flat Rate Scheme percentages from 1 April 2022 onwards as set out below:
| Type of Business | From 1 April 2022 |
| Catering services including restaurants and takeaways | 12.5% |
| Hotel or accommodation | 10.5% |
| Pubs | 6.5% |
