‘Tax break tart’: hospitality tipped to exploit summer VAT cut on children’s meals
Summary
The UK government has temporarily reduced the tax (VAT) on meals for children under 18 from 20% to 5% for summer to help families and hospitality venues. Some restaurants are creating special "kids" menus with expensive items to benefit from the tax cut, while many in the industry say this small discount won't solve their larger financial problems.Key Facts
- The UK cut VAT on children’s meals from 20% to 5% from June 25 to September 1, 2024.
- This tax break is part of a summer savings scheme intended to support restaurants, pubs, and families.
- Some venues are offering high-priced "children’s meals" with luxury items like snails and anchovy butter toast to take advantage of the tax cut.
- Pubs and restaurants are not required to check if a customer ordering a discounted children’s meal is actually under 18.
- Industry leaders say the VAT cut is too small and will not help businesses struggling with high costs.
- Hospitality businesses want a permanent VAT reduction for all meals from 20% to 10%, supported by a petition with over 200,000 signatures.
- The European average VAT on hospitality is 12.8%, with countries like Germany charging as low as 7%.
- Rising costs such as energy bills and wage increases continue to challenge UK hospitality venues despite government support.
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