Our budget views in blue: VAT
– New threshold is £77k
– Hot food if meant for consumption whilst hot (as opposed to kept hot for hygiene reasons or as part of preparation) was always standard rated. Now it is standard rated whatever the reason (apart from fresh loaves of bread)
This is huge news for take-aways. This is probably as a result of the failed Subway VAT appeal. We don’t see how they could appeal this successfully now.
– Previously kiosks at shopping centres and railway centres were considered takeaway rather than “catering” so that anyone eating out (but actually eating almost in the premises – could benefit from zero rate. This discrepancy is to be closed. They will now be classed as catering and the consumer will pay the VAT.
– The government is looking into the current disadvantage suffered by commercial universities in comparison with ordinary universities.
It will be interesting to see how the definition is arrived at.