The UK Chancellor announced temporary VAT cuts from 20% to 5% on family attractions during school holidays, effective from the end of June to 1 September 2026. Additional measures include free bus journeys for under‑16s in England in August, a 12‑month HGV road tax holiday, and a one‑third reduction in red diesel duty until the end of 2026. Business leaders argue the cuts are insufficient to support hospitality and other sectors.
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RTCSuite · about 16 hours ago
The UK will require all VAT invoices to be issued in a specified electronic format from 1 April 2029, covering B2B and B2G transactions. Peppol will serve as the core interoperability network, and NHS England already mandates PEPPOL-compliant invoicing for its suppliers.
UK Government · 1 day ago
The UK HMRC announces simplification of the Capital Goods Scheme effective 29 July 2026. Computers and computer equipment will be excluded and the expenditure threshold for land, buildings and civil engineering work rises to £600,000.
Law360 · 1 day ago
The UK Upper Tribunal ruled that dental aligners are not exempt from VAT under the dental prostheses provision. The decision reverses a lower tribunal ruling and means dental practices must charge VAT on aligners.
Law360 · 3 days ago
UK: The London appeals court has ruled that alternative education providers can claim a VAT exemption for their services. The decision overturns HMRC's earlier denial and may affect VAT treatment for educational institutions.
Marcus Ward Consultancy Ltd · 6 days ago
HMRC’s Notice 700 has been updated to clarify VAT treatment of mobile phone contracts and packages. The key change is that no input tax can be recovered when an employee holds a contract in their own name. The guidance also confirms recoverability rules for business‑only mobile and broadband services, and outlines apportionment requirements for private use.
AVASK · 7 days ago
This guide explains the UK VAT invoice requirements for 2026, detailing the 14 mandatory fields for full invoices, the simplified format for supplies up to £250, and the 30‑day issuance deadline. It also covers retention rules, the £250 threshold, and how invoice rules change for cross‑border sales to the EU, UAE, and Saudi Arabia.
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Key Takeaways
From the end of June 2026 (when Scottish schools break up) until 1 September 2026 (when children return to classrooms in England, Wales and Northern Ireland).
The rate is reduced from 20% to 5% during the specified period.
They are available in August 2026.
The duty reduction applies until 31 December 2026.
It is a 12‑month holiday starting from the announcement in May 2026.
Primary source
Read the full article at Greater Birmingham Chambers of CommerceThis summary was published on VATfaqs.com on 23 May 2026. It relates to VAT developments in United Kingdom. The original source is Greater Birmingham Chambers of Commerce.
