Summer VAT cut ends on 1 September

The Great British Summer Savings VAT discount ends on Tuesday with government reporting millions of pounds saved by families but there are potential pitfalls for businesses due to VAT complexity and exemptions

Millions of pounds have been saved by families so far via a VAT cut from 20% to 5% on kids’ meals in restaurants and tickets to attractions like theatres and soft play, alongside free bus fares in England for children aged five to 15.

But the end to the VAT discount comes with a warning from HMRC to make sure all till systems revert to 20% at midnight on Tuesday 1 September to avoid problems with VAT returns.

HMRC warned: ‘Businesses that used the reduced rate for children’s meals, tickets and family attractions must make sure they have switched back to charging the standard VAT rate of 20% on all relevant sales and supplies from 2 September 2026.  

‘They can do this by checking that their tills, point-of-sale systems, accounting software and VAT records are updated from 2 September.’ 

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