Different VAT rates on a restaurant receipt. Why?

licklelilli

I get that there has been a change for hospitality at 5%, but i can't get my head around the breakdown below. What items are deemed to be 5% whilst others are still 20%? I thought may it was Drinks...or maybe just alcohol, but those amounts aren't correct. I can gather together random amounts to make £161 and £58 but there doesn't appear to be any pattern as to which would be included where!?

ThisnotThat

https://www.gov.uk/guidance/vat-reduced-rate-for-hospitality-holiday-accommodation-and-attractions
Edit:  In case that's not clear, my take on it is that you were charged 20% VAT on the beer and the gin in your Gin and Tonics, but not on the tonic water which was charged at 5% as it is non-alcoholic.  However, on the bill they've billed them as G&T rather than billing for the gin and the tonic water separately.  That is presumably why you can't get the figures to add up to £58.

Grumpy_chap

licklelilli said:

I get that there has been a change for hospitality at 5%, but i can't get my head around the breakdown below. What items are deemed to be 5% whilst others are still 20%? I thought may it was Drinks...or maybe just alcohol, but those amounts aren't correct. I can gather together random amounts to make £161 and £58 but there doesn't appear to be any pattern as to which would be included where!?

I have no clue on the VAT-question, but is that basically steak & chips for two comes out at £250?

licklelilli

Grumpy_chap said:

licklelilli said:

I get that there has been a change for hospitality at 5%, but i can't get my head around the breakdown below. What items are deemed to be 5% whilst others are still 20%? I thought may it was Drinks...or maybe just alcohol, but those amounts aren't correct. I can gather together random amounts to make £161 and £58 but there doesn't appear to be any pattern as to which would be included where!?

I have no clue on the VAT-question, but is that basically steak & chips for two comes out at £250?

I know right!! This is not my expense, it's for the person i work for. £16 for a G&T, i'd expect a bottle of both for that price!

MattMattMattUK

The 5% rate is the current VAT rate for hospitality on food and non-alcoholic beverages.

https://www.gov.uk/government/publications/introduction-of-a-new-reduced-rate-of-vat-for-hospitality-holiday-accommodation-and-attractions/introduction-of-a-new-reduced-rate-of-vat-for-hospitality-holiday-accommodation-and-attractions

ppec85

As another poster suggested, the confusion is likely caused by them billing the alcoholic items (gin) as G&T together rather than billing for the gin and the tonic water separately.

Based on the amounts:

• Tonic water alone has a unit price of £1.50. 
• The gins alone (Hendrick's and Bathtub) have a unit price of £14.50.

• There's 4 units of tonic water totaling to £6.00.
• There's 4 units of gin totaling £58.00.

All the food and non-alcoholic beverages (coffee, San Pellegrino water) plus the £6.00 for the tonic waters amount to £161. This was subject to 5% VAT (153.33 base price + 7.67 VAT). The gins were subject to 20% VAT (48.33 base price + 9.67 VAT).

The VAT inclusive prices accurately correspond base prices (excl. VAT) and to the VAT amounts indicated:

• £161 (VAT inclusive price) / 1.05 (VAT rate) = £153.33 (base price excl. VAT)
• £58 (VAT inclusive price) / 1.20 (VAT rate) = £48.33 (base price excl. VAT)

Finally, the 12.5% service charge was then charged on top of the total aggregated VAT inclusive amounts. 
 
Hope this helps!