VAT on food and drink for Wedding

Flyboy152

paddyrg wrote: »

...if you don't mind the fact they may decide to take a different booking instead, if you're a 'troublemaker' - is it worth it? Up to you!

I am sure they will, but it would be a satisfying parting shot.

mountainofdebt

Of course depending on the final bill, there's the issue of money laundering regulations to be considered as well, if paying in cash

arcon5

thenudeone wrote: »

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/BeginnersGuideToTax/VAT/DG_190918

Prices in advertisements, catalogues and price lists
Products advertised in outlets, magazines, on the internet, or shown in catalogues, price lists and other literature may be aimed at the consumer, businesses, or both. If they're only meant for the general public, they'll show you a price including VAT. This is a legal requirement.

If you are were quoted £50 for a wedding meal, then £50 is the price you are contracted to pay, including VAT if relevant. Businesses don't get married!

Point out that you have a legally binding contract and that you expect them to honour it.

But they have already told op these facilities are usually used by corporate customers and the quoted legislation states you must show inclusive prices if the literature is meant "only" for the general public.

Since thats not the case with the venue, will this still apply?

They haven't quoted £50 though.... op said they quoted £50 + £10 VAT per head.
The confusion has come about because op assumed prices on some menus was inclusive. Agreeably a natural assumption for any consumer, but an incorrect one nontheless.

Flyboy152

mountainofdebt wrote: »

Of course depending on the final bill, there's the issue of money laundering regulations to be considered as well, if paying in cash

I doubt it will come to that. If the OP pays half up front in cash of less than ten thousand pounds and then the other half later on, it probably wont come under the MLRs

hcb42

I work in hotel trade (in very large hotel!) and we would simply not take that much cash off anyone in one transaction.

OP, you have to decide is the venue worth £60 or not. I have sold many weddings at £75 and many more at £40 or so, so it is a personal decision, if it is too much money walk away, but your method of payment will not affect the venue's tax liability on food and beverage.

mountainofdebt

Flyboy152 wrote: »

I doubt it will come to that. If the OP pays half up front in cash of less than ten thousand pounds and then the other half later on, it probably wont come under the MLRs

Well as far as the Company that I work for is concerned, the amount of cash paid per transaction would be the indicator as to whether the MLRs come into play not whether the individual paid the same amount of cash but in a number of small payments

erdd2

In its simplist form Vat is chargeable on all goods and services that are not basic essential needs. Dining out is not a basic need thus as an early responder said, the price quoted at the outset would be considered the total (VAT included). Whatever you do OP, hope all goes well on the day!

Flyboy152

mountainofdebt wrote: »

Well as far as the Company that I work for is concerned, the amount of cash paid per transaction would be the indicator as to whether the MLRs come into play not whether the individual paid the same amount of cash but in a number of small payments

Your company did not write the regulations though, did they. The query was would the payment of cash contravene those regulations.

thenudeone

Equaliser123 wrote: »

I think you need to read the background in a bit more detail.

I agree now I've had another look. I think the government website is over-simplistic at best, incorrect at worst.

A very quick look at the "Price Marking Order 2004" (yawn) http://www.legislation.gov.uk/uksi/2004/102/made suggests that only products are included, not services or goods supplied as part of a service (such as a meal). Can't see the logic for that at all. Perhaps there is a separate piece of legislation making the same requirement for services???