Businesses benefiting from the temporary 5% VAT rate for children’s meals and family attractions need to be ready for the relief to end.
The temporary reduced rate applies up to and including 1 September 2026. From 2 September, affected supplies will generally return to their normal VAT treatment, which in many cases means the standard 20% rate.
What has been covered?
The temporary 5% rate was introduced on 25 June 2026 and applies to certain supplies aimed at families with children.
These include qualifying children’s meals supplied by restaurants, cafés and similar establishments, children’s tickets for cinemas, theatres, concerts, exhibitions and shows, and admission to qualifying family attractions.
For certain qualifying attractions, the reduced rate applies to admission for all customers, not just children.
What businesses need to do
Businesses using the temporary rate should make sure their accounting, till and booking systems are changed back at the appropriate time.
Particular care may be needed where tickets or admissions are purchased in advance. HMRC states that payments received for rights of admission taking place after the relief ends on 1 September are subject to the standard rate.
This means businesses should not simply look at the date on which the customer pays. The VAT time-of-supply and change-of-rate rules may need to be considered.
Businesses should also review any packages, promotions or mixed supplies that have benefited from the temporary arrangements and make sure the correct VAT treatment is applied from 2 September.
Check your systems now
If your business has used the temporary 5% rate, this is a good opportunity to check that prices, tills, invoicing software, online booking systems and accounting records are ready for the change.
Errors could result in too little VAT being accounted for to HMRC or customers being charged the wrong amount.
If you are uncertain how the ending of the temporary relief affects your business, please contact us so that we can check the VAT treatment of your supplies.
Further information: HMRC: Temporary reduced rate of VAT for children’s meals, tickets and family attractions
