The temporary reduced rate of VAT for hospitality and tourism was introduced on 15 July to support the cash flow and viability of businesses in the hospitality and tourism sectors which have been severely affected by the coronavirus pandemic. Hospitality for the purposes of this relief includes the supply of food and non-alcoholic beverages from restaurants, cafes, pubs and similar establishments for consumption on the premises. It also includes the supply of hot food and non-alcoholic hot beverages to take away.
Where a ten-pin bowling business provides such hospitality, that hospitality will benefit from the reduced rate. In general, admission charges that entitle a person to participate in events where the primary focus is a sporting activity will not be eligible for the reduced rate.
In addition to the reduced VAT rate, the Government has announced a significant support package to help businesses through the winter months, which includes a new Job Support Scheme, an extension to the Self-Employment Income Support Scheme (SEISS) grant, and an extension of the application window for the government-backed loan schemes.