HM Revenue and Customs gives New Years' Day support to hospitality businesses.

The taxman has given pubs, clubs, restaurants and hotels as well as many other retail operators an extension allowing them to charge 15% VAT rate until 6am on New Years Day. HM Revenue & Customs has extended the deadline to spare many businesses catering for customers at the stroke of midnight on 31st December when the VAT rate reverts to 17.5%. HM Revenue and Customs said " In order to assist businesses in this position HMRC will allow them to account for VAT at 15 % on takings received up to the earlier of:

the end of trading of the 31st December or 6am on the morning of 1 January 2010."

However, the extension is restricted to those businesses open at midnight on 31st December 2009 that account for VAT at the point of sale such as businesses on a retail scheme such as pubs, shops, restaurants etc, HMRC emphasised. The extension will not apply to mail order or e-commerce operations that account for VAT on the basis of VAT invoices issued or pre-payments for supplies of goods or services to be provided after 6am on 1 January 2010.

HM Revenue & Customs have recognised the considerable effort required by all types of retail operations to implement a VAT rate change, because it impacts on point of sale material, pricing and Electronic Point of Sale Systems.

Haven Systems have a process in place to ensure existing systems comply with the imminent return to a 17.5% VAT rate. Communication will be sent out via our helpdesk in advance to ensure all users of Haven Systems EPOS software are fully aware of the routine to revert systems to a 17.5% VAT rate.