#vat

#vat

2025 is proving to be one of the most challenging years yet for the hospitality industry in the UK, with the increase in National Insurance contributions and London Living Wage, the decrease in business rates relief, and the 20% rate of VAT putting a huge strain on the industry. Venues continue to close, with two hospitality sites closing per day in the first six months of the year and the hospitality sector accounting for 53% of all job losses in the UK since the Budget.

Nearly all new cars in Norway are electric now, so a plan to phase out subsidies is underway. There's now a proposal to phase out a tax exemption for EVs by 2027. The plan is to lower the threshold for eligibility in 2026 before completely removing this benefit the following year. Norway's finance minister argues the country's transition to electric propulsion is pretty much complete and the incentive isn't needed anymore.

The old age pension is set to rise by €10 in Budget 2026 1,000 additional childcare places Vat rate expected to be cut to 9pc for the building of new apartments and homes €500 cut in student fees expected Mental-health crisis teams to staff A&Es Unlikely to be any cut in cost of childcare A €10 euro increase in core welfare payments will be announced in tomorrow's Budget, as talks go down to the wire.

Rumour has it that Rachel Reeves is limbering up for November with a Budget that will make the taxman's quill squeak like a stuck pig. Property, pensions, profits, pasties - all grist to the Exchequer's mill. The Treasury is leaving no stone unturned, no pocket unpicked, no cupboard unopened. The only thing, one suspects, that remains miraculously safe from her fiscal scythe is Larry the Cat's supper.

A Vat reduction for the hospitality sector, a rise in the minimum wage and the end of the "one-off" cost-of-living packages are among the measures being considered for Budget 2026.

As work becomes increasingly borderless, understanding how VAT applies is critical. The first step is to know where obligations begin and ensure they're addressed before they become a problem. There are two categories of global workers for whom VAT considerations are especially relevant: Employees on international secondments, who remain on their company's payroll while temporarily working abroad, and digital nomads, who operate their own businesses while moving from country to country.

The Government is making a desperate bid to stave off rising energy bills this winter, with plans to extend the lower rate of VAT on gas and electricity.

The Budget is currently earmarked for €1.5 billion in tax cuts next year, but reducing VAT for the hospitality sector could consume €1 billion of that allocation.

In October's Budget, €1.5 billion is allocated for tax cuts next year, but a €1 billion reduction in VAT for hospitality will limit potential income tax cuts.

"VAT is a widely adopted indirect tax that significantly contributes to government revenue by being levied on goods and services at each stage of production and sale."