Businesses passing on VAT reduction

insert_random_name_here

VAT has been cut to 5% in the hospitality sector (hot food, non-alcoholic drinks, accommodation, attractions, etc.) from 15th July. According to the BBC yesterday "The Treasury said it hoped firms would pass the VAT savings on to customers but many had been without income for months so it would be their decision." It will be interesting to see which businesses actually do that. 

For example, I have a Hilton Hotels booking from the 15th for two nights. It is not a pre-paid booking so the tax point for VAT will be during my stay not before it and therefore, in theory, I might be able to benefit from the VAT reduction. Hilton's T's&C's say VAT and other local taxes can change but it says nothing about passing on changes. I'd quite like the 12.5% reduction on the (VAT inclusive) room rate that I booked. I think I'll wait a couple of days for any HRMC clarifications to be issued then I'll give them a call. 

Has anyone heard from businesses who definitely will or won't pass on the saving?

bradders1983

I wouldnt blame any business for not passing it on, nobody wants companies going to the wall. I have 6 hotels next month booked already, none of which have been paid for and tbh I wont mind one bit if they dont knock 12.5% off, I was happy with the price displayed at the time of booking last month.

comeandgo

I have 17 hotels booked for September.  I booked them at the rates they advertised in January, I do not expect them to change the rate, they have suffered enough.

twhitehead

I booked a UK holiday in January for March and paid what they asked.  March was cancelled so I took the option to keep my account in credit.  In May I looked on the website and booked a holiday for August.  Cost more than March which is understandable and acceptable so I paid the extra.  The August holiday is going ahead.  Any idea how I stand about getting a refund for the drop in VAT?

bradders1983

You stand nowhere, you have already paid for it.

SevenOfNine

I have 4 nights booked in 2 hotels, I don't have a problem with them keeping the VAT decrease. I was happy with the price paid & will be using the rooms.

twhitehead

Re previous post.  I have also booked for Christmas with the same chain.  Just paid a deposit, what odds on the 'agreed' price coming down?

bradders1983

twhitehead said:

Re previous post.  I have also booked for Christmas with the same chain.  Just paid a deposit, what odds on the 'agreed' price coming down?

Minimal. These companies are desperate for funds. And at the end of the day you will have agreed to pay an all in price, and not "£xx plus VAT"

Socajam

What is wrong with this greed - it's nauseating
As others have said, the price was paid before the VAT reduction - go away and enjoy yourself - and thanks to the Creator that you are alive and kicking.

bradders1983

Indeed, this VAT reduction has not been instituted for the benefit of the consumer as they are unlikely to see a huge benefit.

insert_random_name_here

Socajam said:

What is wrong with this greed - it's nauseating
As others have said, the price was paid before the VAT reduction

In the case where there has been no tax point, i.e. an advance booking with no invoice or payment, then why is it nauseating greed to expect a supplier to reduce their price? Most people would expect the price to go up if VAT increased, so why not the other way?  A 12.5% reduction on a hotel room would be most welcome - and this is after all moneysavingexpert.com