Hospitality news: upcoming changes impacting businesses
Just as the world returns to normal, three significant events in the next 6-months threaten to affect hospitality business as well as the consumer. Changes to VAT, the furlough scheme and National Insurance Contributions will be the key ingredients in a cocktail that is sure to test employers, affecting employees, as well as consumer spending.
In short, those changes are:
- VAT – On the 1st October VAT for hospitality goes from 5% to 12.5% which adds a further 7.5% to a plate of food. What this will mean in terms of consumer spending is yet to be seen.
- Furlough – The furlough scheme comes to an end on 1st October. At a cost of £70bn, preserving 11m jobs, after 18 months, the scheme comes to an end. With an estimated 2 million employees left on the scheme, redundancies loom, which could have far reaching effects on many industry sectors.
- NIC – National Insurance Contributions are set to rise by 1.25% in April 2022. This will include Employer and Employee contributions, costing payroll as well as reducing take home pay.
If you don’t understand any of the above, and would like to know how your business could be affected, Paperchase is here to help. Contact us here or call 07545 922 908.