The BBC reports the following:
Wetherspoons says it will have to put up the price of food in its pubs by around 40p a meal if a VAT cut for the hospitality industry is not extended.
The tax was slashed on food sold in pubs from 20% to 5% during the pandemic to help struggling businesses.
But it is set to return to normal levels, in stages, over the next year, rising to 12.5% in September 2021.
The chain, which has 860 pubs, said it would "make the entire hospitality industry less competitive".
The BBC has contacted the Treasury for a comment.
"It is an important principle of taxation that taxes should be fair and equitable," Wetherspoons said, adding that its own price rises would come in from September.
"One area of undoubted unfairness, which creates economic distortions, relates to VAT. Supermarkets pay zero VAT on food, but pubs and restaurants pay 20%, in normal circumstances."
My question to Wetherspoons is this, when the VAT rates were reduced did you pass that on to your customers via reduced prices?
Tax Investigation Insurance
Having a Solar Protect Tax Investigation Insurance policy at your disposal means that should you be one of the many 1000's of businesses or individuals that are selected by HMRC each year to look into your tax affairs your own accountant (your tax return agent) can get on and defend you robustly.
You have the peace of mind knowing that your accountant's (your tax return agent) fees will be paid by the insurance without any Excess for you to find.
Tax Investigation Insurance is an insurance policy that will fully reimburse your accountants (your tax return agent) fees up to £100,000 if you are subject to enquiry by or dispute with HMRC.
A Solar Protect policy will enable your Accountant (your tax return agent) to:
- Deal with any correspondence from HMRC
- Attend any meeting with HMRC
- Appeal to the First-tier Tribunal or Upper Tribunal
- Having the security of knowing that fees will be met in full will enable your Accountant (your tax return agent) to defend your position robustly
Please click here for details.