HMRC fails to address hotel room hire and catering issue

Revenue & Customs Brief 02/13 is a reminder that HMRC policy changed as regards the VAT liability of room hire in hotels during the course of 2011. It appears that HMRC believes that this change was not sufficiently well publicised.

It says that anyone who has not applied the new policy up to the date of the Brief will not be pursued, but must apply it from that date. This may seem reasonable but perhaps is unfair to better informed businesses.