Wedding venues and VAT rise

ellay864

Just thought I'd share the result of a discussion I had last week with my venue. We're not marrying until October 2011 and had just put down a deposit. Final payment wouldnt be due til much nearer the time, well after the VAT rise comes into effect in January.

I've agreed with them that we can pay for the room hire itself up front before December and they'll raise the invoice then so it comes in at the current VAT rate. They're also looking into whether they can split the invoice for the food/drinks bill (that's going to be the bulk of the cost) so anything I pay this year is at the cheaper rate, but not sure yet if they can effectively split an invoice.

Remember that even if a venue gives a price, it is often stated as 'inclusive of VAT at the current rate' therefore the 'agreed' price may rise as all they are doing is reflecting what is current at the time you're billed for it.

I thought it was worth asking and the venue have been really good about it, its just down to what their financial people can legally and practically do. I was also warned that payments are non-refundable but I do have wedding insurance so that's less of a worry

Lexxi

I was just going to suggest weighing up the increase in VAT against savings rate but they're really bad anyway and no gaurentee they'll be any better in the next 15 months or so to your wedding!! unless you can find a fixed rate and swap the money over if anything gets better.

They should be able to split the invoice, they give you an invoice of £5000 and you pay off £2000 by the VAT increase there is £3000 outstanding so that will be at the higher rate. I don't think they can charge you a higher rate on monies already paid.
Are there are any other threads on here about this from the last rate rise?

JCS1

Here you go, I posted a link to HMRC guidance notes relating to deposits on it.

https://forums.moneysavingexpert.com/discussion/2549785=

Any monies paid before 4th January will have VAT at 17.5%, after that date will be 20%.