The feel good campaign launched by the chancellor after the full force of the conflict in the Gulf was being felt creates VAT complexities for accountants and businesses as the discounted rate is only available for 69 days of summer.

The 5% summer VAT rate starts on 25 June for children’s meals at restaurants, cafes and hotels, and the wider hospitality sector, over the summer. The discounted VAT rate will end on 1 September 2026.

There will also be a discounted 5% VAT rate on children’s tickets to attractions, including theme parks, cinemas, zoos, fairs and soft play.

This will require a very quick change to software to ensure the correct VAT rate is charged and the food served is sold as part of a children’s menus.