The government has announced a temporary reduction in VAT from 20% to 5% on certain children’s meals and family leisure activities during the summer holidays. The measure will run from 25 June 2026 until 1 September 2026 and is intended to help families manage the increased costs associated with the school holiday period.
The scheme, known as “Great British Summer Savings”, applies to a range of qualifying supplies, including children’s meals in cafés and restaurants, children’s tickets for cinemas and theatres, and admission to family attractions such as soft play centres, adventure parks and theme parks.
For businesses operating in these sectors, the reduced VAT rate presents both an opportunity and an administrative challenge. Eligible businesses will need to ensure that their accounting systems, point-of-sale software and invoicing procedures correctly apply the temporary rate during the specified period.
Key considerations include:
- Determining whether your products or services qualify for the reduced rate
- Understanding how the rules apply to bundled offers and mixed supplies
- Ensuring VAT is accounted for correctly based on the relevant time of supply
- Updating accounting software and internal processes before the scheme begins
Businesses may also wish to consider whether to pass the full VAT saving on to customers, use it to stimulate demand, or adopt a combination of both approaches.
HMRC has confirmed that it will be providing webinars and guidance to help affected businesses understand the rules and remain compliant.
At GnC Accounting, we advise businesses across Acton, Ealing and West London on VAT compliance, bookkeeping and tax planning. If your business may be affected by the temporary VAT reduction, now is the ideal time to review your systems and ensure you are prepared before the summer holiday season begins.