To support the hospitality sector and help families with the cost of living, the Chancellor has launched the ‘Great British Summer Savings’ scheme, which sees a temporary cut in the rate of VAT from 20% to 5% for children’s meals in restaurants, children’s cinema, theatre, show and concert tickets, and admission to other attractions suitable for families with children such as soft play, adventure centres, and theme parks.
The reduced rate of VAT will apply between 25 June and 1 September 2026. With less than a month until it comes into effect, this may present affected businesses with several challenges, including accurately identifying the supplies that will be impacted, ensuring cut-off issues are dealt with, and addressing the need to update pricing processes, systems and tills, etc.
If you would like advice on how these changes apply to your business, please contact our team.
