The UK government has announced a temporary reduction in VAT on children’s meals from 20% to 5% for the period 25 June to 1 September 2026, as part of the Great British summer savings scheme. Pubs and restaurants are already devising menus to take advantage of the discount, while industry leaders criticize the measure as a token gesture. The scheme also applies to cinema and theatre tickets and family attractions, with an estimated cost to the Treasury of £10.5 bn to £13 bn.
The VATfaqs digest
Global VAT news, delivered Tuesday and Thursday. Free, curated from 50+ official sources, no spam.
No spam · Unsubscribe any time
ICAEW · about 18 hours ago
The UK will apply a temporary 5% VAT rate to children’s meals and family‑friendly entertainment from 25 June to 1 September 2026. The guidance clarifies eligibility, exclusions such as sports events, and that businesses are not obliged to pass the cut on to consumers.
VatCalc · 4 days ago
The UK Court of Appeal on 12 June 2026 ruled that Bolt cannot use the Tour Operators Margin Scheme (TOMS) and must charge full 20% VAT on the entire fare. This reverses earlier tribunal decisions that had allowed Bolt to apply TOMS. The ruling has implications for other ride‑sharing operators such as Uber.
TaxPolicy · 5 days ago
A proposed permanent reduction of the UK hospitality VAT rate from 20% to 10% would cost an estimated £12‑14 bn per year, with the bulk of the benefit accruing to large chains such as McDonald’s. The analysis argues the cut is mis‑targeted, unlikely to lower prices, and would create incentives for businesses to re‑characterise activities to qualify for the lower rate. It suggests alternative measures—such as business‑rate reform or NIC relief—would better support the sector.
Business Wales · 6 days ago
The UK Government will temporarily reduce VAT on children’s meals and outings to 5% from 25 June 2026 to 1 September 2026, cutting the standard rate of 20%. The scheme covers children’s menu meals in restaurants, tickets for theatres, cinemas, soft play, adventure centres and theme parks. Businesses should review the GOV.UK guidance for eligibility and compliance.
VatIT · 8 days ago
The article provides a detailed checklist for UK VAT‑registered businesses to comply with the Making Tax Digital (MTD) programme, outlining digital record‑keeping, API submission, exemption criteria, and the penalty regime. It also highlights upcoming MTD requirements for Income Tax and offers guidance on software selection and consolidation.
Law360 · 8 days ago
A London tribunal ruled that Barclays' British branch was skeletal and did not constitute a fixed establishment for VAT grouping purposes, resulting in the loss of Barclays' appeal. The decision clarifies the application of UK fixed establishment rules for foreign entities.
Reach finance leaders who read VAT news.
Put your brand alongside trusted tax-tech intelligence across 150+ countries.
Key Takeaways
It starts on 25 June 2026 and ends on 1 September 2026.
The rate drops from 20% to 5% for meals served to customers under 18.
No, there is no obligation to check IDs; the discount applies automatically to meals for customers under 18.
The Treasury estimates the cost to be between £10.5 bn and £13 bn.
Cinema and theatre tickets, and family attractions also receive the 20% to 5% VAT reduction.
Primary source
Read the full article at GuardianThis summary was published on VATfaqs.com on 17 June 2026. It relates to VAT developments in United Kingdom. The original source is Guardian.
