VAT chargeable on all non-refundable deposits
HMRC has confirmed a new policy that VAT will remain due on a deposit, even if the customer does not use the goods or services for which it was paid – this comes into effect from March 1 2019. This change will affect the hospitality industry significantly (but it will also apply to other businesses), which will soon be unable to recover VAT charged on cancelations or ‘no show’ charges.
VAT chargeable on all non-refundable deposits
HMRC has confirmed a new policy that VAT will remain due on a deposit, even if the customer does not use the goods or services for which it was paid – this comes into effect from March 1 2019. This change will affect the hospitality industry significantly (but it will also apply to other businesses), which will soon be unable to recover VAT charged on cancelations or ‘no show’ charges.
Restaurants in Coventry see fastest turnover growth in the UK - as London lags behind
Coventry’s restaurants saw the fastest growth in turnover of the UK’s major cities over the long term, increasing at 96% per annum over two years to £187m in 2015 from £64m in 2013.
1,800 UK hotel companies are at risk of going bust
The advantages of the fall in the value of sterling post-Brexit may not be able to overcome the other strong headwinds the sector faces, resulting in 1,800 UK hotel companies having at least a 30% chance of going insolvent within the next three years.