VAT claims under the previous reduced rate webinar with KPMG

As you will recall, in response to Covid-19, the Temporary Reduced Rate of VAT (“TRR”) of 5% applied to supplies of admission to certain attractions made between July 2020 – September 2021 (instead of the standard rate of VAT of 20%). The TRR was increased to 12.5% between October 2021 – March 2022. The UK Government’s published policy objective for the TRR was to support hospitality and leisure businesses who were severely affected by the Covid-19 pandemic. During the last two years, there has been a significant number of challenges to the activities that qualified for the relief.

As a result of the above, there has been recent discussions with HMRC in respect of some specific areas that HMRC now either accept qualified for the TRR, or are currently re-considering their position on areas that was not previously referenced within HMRC’s published guidance to be eligible for the relief. This could lead to businesses submitting refund claims and there are various leisure sub-sectors where this opportunity could impact, including admission to go-karting, rock-climbing, gyms, mini-golf, bowling, spas, laser-quest, night-clubs amongst many others.