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taxadvisor.uk, Chartered Certified Accountant
Category: Tax
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Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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I RUN A SMALL HOTEL AND RESTAURANT & BAR. I AM VAT REGISTERED.

Resolved Question:

I RUN A SMALL HOTEL AND RESTAURANT & BAR.
I AM VAT REGISTERED.
1. HOW MUCH VAT IS ON A ROOM SALE ?
2. HOW MUCH VAT ON BEER SALES ?
3. HOW MUCH VAT ON FOOD FROM RESTAURANT ?

THANKS
Submitted: 3 years ago.
Category: Tax
Expert:  taxadvisor.uk replied 3 years ago.
Hello and welcome to the site. Thank you for your question.

These items are all charged at standard rate of 20%.

More information on this can be found here

http://www.hmrc.gov.uk/vat/start/introduction.htm

I hope this is helpful and answers your question.

If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.

taxadvisor.uk and other Tax Specialists are ready to help you
Customer: replied 3 years ago.

so, if for example; i take £100 per week in beer sales, i will have to pay 20% vat to the hmrc.


and so on with hotel accom and restaurant takings, is that so ??


 


thanks

Expert:  taxadvisor.uk replied 3 years ago.
Martin, thank you for your reply.

If you take £100 per week in beer sales, this figure includes VAT.
The figure relating to VAT would be 100 x (20/120) = £16.67
So the make of takings would be
Ex VAT sales (100.00-16.67) = £83.33
VAT at 20% = £16.67
Total = £100.00

As the takings are inclusive of VAT, so you should multipy the total with 16.67% to get the VAT figure.

I hope this is helpful and answers your question.


If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.



Expert:  taxadvisor.uk replied 3 years ago.
I thank you for accepting my answer.

Best wishes.