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

Former_MSE_Naomi

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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blagoslovljena

Yorkshire Wildlife Park have kept their prices the same and are pocketing the cash from the VAT decrease. 

derekderek1000

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

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

derekderek1000 said:

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_

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.