This summer there is a reduced rate of VAT on children’s meals and family attractions. The rate is 5%, it started on 25th June 2026 and will end on 1st September 2026.
If your business is in these sectors, it is worth having a look over the rules to see if this applies for you, as some customers will be expecting reduced prices.
For restaurants and catering, it is important to keep a log of income from children’s menus. This rate only applies to orders from “children’s menu” and not orders from a child on the main menu. To confirm, if an adult ordered from the children’s menu this should also be charged at 5% VAT.
Businesses can choose whether to pass the VAT saving on to customers or retain some or all of it within existing pricing structures.
When comparing your output VAT to previous quarters, you will need to remember that it is likely to be lower due to the reduced rate and it would be more effective to compare net sales.
To find out more click here.
If you need any tax advice in Milton Keynes give a call to the team at Holmes Accountancy on 01908 315716 or contact us here.
The tax tip is provided for general guidance only; further advice should be sought, for specific issues.
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