VAT cut to 5% for hotels and restaurants, but will you get a discount? - MSE News

VAT has been temporarily cut from 20% to 5% for hospitality and tourism businesses, and a number of big chains including McDonald's and Nando's are slashing prices as a result. But businesses don't have to pass on the tax cut to customers - we've full info below on what the change means for you...

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'VAT cut to 5% for hotels and restaurants - but will you get a discount?'

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Comments

  • Yorkshire Wildlife Park have kept their prices the same and are pocketing the cash from the VAT decrease. 
  • on the main page it says mcdonalds etc have cut vat to 5% and maths wizards will work out that to be 12.5 % saving, vat hasnt been 17.5%for a long time?
  • Surfer01
    Surfer01 Posts: 29
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    Went to a highly rated pub for a lunch on 15/07/2020 and the price of each item of food had increased by £1 from the 14/07/2020.  No discount for the meal either and the meal was not very good.  We won't be using that pub again!
  • dlusman
    dlusman Posts: 2,711
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    edited 22 July 2020 at 9:32AM
    on the main page it says mcdonalds etc have cut vat to 5% and maths wizards will work out that to be 12.5 % saving, vat hasnt been 17.5%for a long time?
    The saving IS 12.5% ,you need to brush up on your maths :) . if ex-vat price is ( for example )  £100  , old inc-vat price = £120 , new inc-vat price = £105. saving = £15 , %age saving = 15/120 = 12.5%
  • Penguin_
    Penguin_ Posts: 1,191
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    I'm not expecting to get any discounts from such businesses as I have read the VAT decrease to be aimed at helping them with lost revenues during the pandemic. Some may pass on the savings but smaller operators won't & I don't blame them at all.
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