The Government has announced a temporary 5% VAT rate for children’s meals, admission tickets, and family attractions as part of its summer cost-of-living support measures. From 25th June 2026 to 1st September 2026, qualifying supplies will attract the new VAT rate instead of the standard 20% rate.
While the change is intended to help reduce costs for families during the school holidays, it also creates a number of practical considerations for businesses in the hospitality, leisure, entertainment, and attraction sectors.
What Is Changing?
For a limited period between 25th June and 1st September 2026, a reduced VAT rate of 5% will apply to:
- Qualifying children’s meals supplied by restaurants, cafés, and similar establishments
- Children’s admission tickets to cinemas, theatres, concerts, exhibitions, and shows
- Admission tickets to certain family attractions, including many theme parks, zoos, soft play centres, museums, and similar venues
Businesses that currently charge VAT at 20% on these supplies may need to update pricing, accounting systems, tills, and booking platforms to ensure the correct VAT treatment is applied during the qualifying period.
Which Children’s Meals Qualify?
Not every meal purchased by or for a child will benefit from the reduced rate.
To qualify, the meal must:
- Be marketed and presented specifically as a children’s meal
- Be supplied as part of catering services for consumption on the premises
- Be offered by a restaurant, café, or similar establishment
HMRC has made it clear that eligibility depends on how the meal is marketed, priced, and presented rather than who ultimately consumes it. A dedicated children’s menu will generally be a strong indicator that the meal qualifies.
What Doesn’t Qualify?
The reduced rate does not apply to:
- Smaller portions of adult meals
- Discounted adult menu items
- Shared meals intended for adults and children
- Takeaway food
- Meals that include alcoholic drinks
Where a children’s meal is sold as a package, such as a main course, drink, and dessert for a single price, the entire package can qualify for the reduced rate. However, separately priced add-ons and upgrades may remain subject to the standard VAT rate.
How Does the Reduced Rate Apply to Tickets?
The temporary VAT reduction also applies to children’s tickets for:
- Cinema screenings
- Theatre performances
- Concerts and shows
- Exhibitions
Similarly to children’s meals, eligibility is determined by how the ticket is marketed and sold. Children’s tickets must be specifically presented as admissions for children. Adult tickets remain subject to the standard rate unless they form part of a qualifying family package.
Family Tickets
One particularly notable aspect of the announcement is the treatment of family tickets.
Where a family ticket includes at least one child admission and is sold as a single package, the reduced VAT rate applies to the entire ticket price, including the adult admissions within that package.
This could create significant VAT savings for qualifying family attractions and venues during the summer holiday period.
Which Attractions Are Included?
The reduced rate extends beyond traditional entertainment venues and covers admissions to a wide range of attractions suitable for families with children.
Examples include:
- Theme parks and amusement parks
- Zoos and animal attractions
- Soft play centres
- Adventure parks
- Water parks
- Circuses and fairs
- Museums and certain cultural attractions
- Observation attractions and similar visitor destinations
However, businesses should be aware that existing VAT exemptions remain unchanged. If admission is already exempt from VAT, the temporary 5% rate does not apply.
Practical Considerations for Businesses
Although the policy may appear straightforward, implementation may require careful planning.
Businesses affected by the change should review internal procedures and processes such as:
- Pricing structures and promotional offers
- EPOS and till systems
- Online booking platforms
- VAT coding within accounting software
- Staff training and customer communications
The reduced rate only applies for a little over two months, meaning businesses will also need a plan for reverting supplies back to their usual VAT treatment from 2 September 2026 onwards.
Will Customers See Lower Prices?
The Government’s intention is to reduce the cost of selected activities and services for families during the summer holidays. However, businesses are not required to reduce prices by the full VAT saving, meaning the impact on consumers may vary between organisations.
Some businesses may choose to pass on the saving in full, while others may use it to offset rising operating costs.
How GLX Can Help
If your business operates in the hospitality, leisure, entertainment, or visitor attraction sectors, it is important to ensure the reduced rate is applied correctly.
The rules depend heavily on how products and admissions are marketed, packaged, and sold, meaning the VAT treatment may not always be straightforward.
If you’re unsure whether a particular supply qualifies, or need support updating your systems and processes, our team can help you understand the rules and remain compliant throughout the temporary relief period – speak to us today.
Frequently Asked Questions: VAT Rate for Children’s Meals and Family Attractions
Does the 5% VAT rate for children’s meals include takeaway meals?
No. The temporary reduced rate applies to qualifying children’s meals supplied as part of catering services for consumption on the premises. Takeaway food remains subject to its usual VAT treatment.
Do family tickets qualify for the reduced VAT rate?
Yes. Where a family ticket includes at least one child admission and is sold as a single package, the reduced 5% VAT rate can apply to the entire ticket price.
When does the temporary VAT reduction start and end?
The temporary 5% VAT rate applies from 25 June 2026 until 1 September 2026. From 2 September 2026, the normal VAT rules will apply again.
Can adult tickets benefit from the reduced rate?
Adult tickets purchased separately do not qualify. However, adult admissions included within a qualifying family ticket may benefit from the temporary reduced rate.
Do all family attractions qualify?
Not necessarily. Businesses should review HMRC’s guidance carefully, as eligibility depends on the nature of the attraction and the VAT treatment of the admission charge.
What should businesses do before the reduced rate begins?
Businesses should review their pricing, accounting software, till systems, booking platforms, and VAT coding to ensure qualifying supplies are treated correctly during the temporary relief period.
The UK Government has announced a new £3,000 Youth Jobs Grant as part of its wider plan to reduce youth unemployment and support businesses in hiring young people.
While employment support schemes are not new, this grant takes a more direct approach by providing employers with a financial incentive to hire individuals who may otherwise struggle to secure work.
In this guide, we explain what the Youth Jobs Grant is, who qualifies, how it works, and what it means for employers.
What is the £3,000 Youth Jobs Grant?
The £3,000 Youth Jobs Grant is a government-funded incentive designed to encourage businesses to hire young people aged between 18 and 24.
Under the scheme, employers receive a £3,000 payment for each eligible individual they hire. The aim is to reduce the initial cost of recruitment and make it easier for businesses to bring in new talent.
Unlike more structured programmes, the grant does not require employers to create specific placements or follow a set employment model. Instead, it supports real, ongoing jobs, giving employers greater flexibility in how roles are designed and delivered.
Who is eligible for the Youth Jobs Grant?
The grant is targeted at young people who are at risk of becoming long-term unemployed.
To qualify, individuals must be aged between 18 and 24, currently claiming Universal Credit, and have been actively seeking work for at least six months.
This means the scheme focuses on those who may need additional support to enter the workforce, but have demonstrated proactivity in their search.
How does the Youth Jobs Grant work?
In practice, the scheme is relatively straightforward. Employers who hire an eligible individual can receive a one-off payment of £3,000 to support the cost of employment.
The grant is intended to help with expenses such as initial salary costs, training and onboarding, and any equipment or setup required for the role.
However, it’s important to note that the grant does not cover the full cost of employment. Unlike other schemes, it is a fixed contribution, meaning employers are still responsible for the majority of wages and ongoing costs.
At the time of posting, there is currently no formal timeline as to when employers can expect to receive the grant payment. However, further details are expected as they roll out the scheme from spring 2026.
How is the Youth Jobs Grant different from the Jobs Guarantee Scheme?
The Youth Jobs Grant sits alongside the Jobs Guarantee Scheme, but the two serve different purposes.
The Youth Jobs Grant is designed as an early intervention. It supports individuals who have been unemployed for around six months by providing a financial incentive to employers, but allows for flexibility in how roles are structured.
In contrast, the Jobs Guarantee Scheme is aimed at those who have been unemployed for longer, typically 18 months, and involves a more structured, fully funded placement with additional support built in.
In short, the Youth Jobs Grant helps encourage hiring earlier, while the Jobs Guarantee provides a more intensive level of support later on.
Why has the Youth Jobs Grant been introduced?
The introduction of the grant reflects a shift in focus towards preventing long-term unemployment, rather than responding reactively.
Research consistently shows that the longer someone remains out of work, the more difficult it becomes to re-enter employment. By introducing support at the six-month mark, the government is aiming to intervene earlier and improve long-term outcomes.
For employers, this also opens up access to a wider pool of candidates who are actively looking for work but may need an initial opportunity to get started.
What does this mean for employers?
For businesses, the £3,000 Youth Jobs Grant offers a practical way to reduce the upfront cost of hiring.
While it does not fully fund wages, it can make a meaningful difference when recruiting junior or entry-level roles, particularly when combined with a well-structured onboarding process.
It also provides an opportunity to invest in future talent. Many businesses struggle to find candidates with experience, but schemes like this allow employers to bring in individuals at an earlier stage and develop them internally.
Thinking about hiring?
The £3,000 Youth Jobs Grant is one of several new initiatives aimed at supporting employment, and understanding how it fits alongside other schemes can help you decide which route is best for your business.
If you’re considering hiring new staff, either through this scheme or more generally, it’s worth taking the time to understand the financial and practical implications. From payroll setup and employment costs through to longer-term planning, having the right structure in place makes a significant difference.
If you’d like to talk through what hiring could look like for your business, or how these schemes may apply to you, get in touch with the GLX team today.
Companies House has announced that several of its statutory fees will increase from 1st February 2026.
These changes form part of Companies House’s ongoing transformation under the Economic Crime and Corporate Transparency (ECCT) Act, which aims to strengthen the integrity of the UK business register and combat fraudulent activity.
Key Fee Changes
From 1st February 2026, the following digital filing fees will apply:
- Company incorporation: increasing from £50 to £100
- Confirmation statement: increasing from £34 to £50
- Voluntary strike off: increasing from £8 to £13
A full list of all revised fees is available on the Companies House website.
Why the Changes Are Being Made
Companies House explains that its fees remain low by international standards, even after these increases. The income generated from these fees supports:
- The incorporation of companies and publication of reliable company information used widely across the UK economy.
- The implementation of new powers under the ECCT Act, which enable Companies House to query, challenge, and remove false or misleading information from the register.
- Enhanced enforcement activity, including funding for The Insolvency Service’s company investigation and director disqualification work.
What This Means for Businesses
The changes are part of a wider effort to build a more transparent and trustworthy marketplace for legitimate UK businesses.
As part of this modernisation, compulsory identity verification will come into force from 18 November 2025, ensuring that individuals who set up or manage companies are verified.
Companies House is also investing in modernised digital systems, additional staff, and improved tools to detect and prevent fraud more effectively.
While the upcoming increases may feel significant, they reflect a broader move towards greater corporate transparency and protection for genuine businesses.
How GLX Can Help
At GLX, we’ll continue to support our clients through these upcoming changes, from company incorporations and annual compliance filings to guidance on new identity verification requirements.
If you have any questions about how these updates may affect your business, please don’t hesitate to get in touch with your Client Manager.
There have been some positive changes to Paternity Leave and Pay in the UK offering more flexibility for fathers and partners.
The changes will allow parents to split leave, there are reduced notice requirements and also support for early births.
Employers will have transitional guidance and can claim repayment for leave taken before April 6th 2024, when the new law came into effect.
These changes will help to promote a better work-life balance and create a more supportive workplace culture for all.
If you have any queries, please do reach out to the team here at GLX, who will be happy to help.
This month, millions of workers will take home more pay due to a reduction in the national insurance rate.
As announced by the chancellor, Jeremy Hunt, in November 2023, the main National Insurance rate for employees was reduced from 12% to 10% on 6 January 2024.
As an example:
On a salary of £30,000 an employee’s NIC per month was £174.30 at the original 12%, however from 6th January 2024 the new amount of £145.25 will be payable, saving £29.05 per month or £348.60 per year.
The self-employed will receive their reductions from April 2024 and we’ll be sharing more detail on this nearer the time.
In the meantime, you can read the full details on the Government website:
HMRC’s Working Time Regulations were introduced on 1st January 2024, and as promised, the GLX payroll team are pleased to share these details with you.
The main aim of these changes is to simplify holiday entitlement and holiday pay calculations.
They will be particularly relevant for companies with zero/variable hour employees or part-year workers, such as term-time only workers.
It’s important to note that the reinstated 12.07% holiday calculation (based on 28 days of holiday) and rolled-up holiday calculations can only be used for holiday years that start after 1st April 2024.
If your holiday year began on 1st January 2024, you’ll need to wait until January 2025 to implement and continue using your current method.
For full information, you can visit the following link:
If you would like to discuss this further, please don’t hesitate to get in touch.
The Government is proposing to introduce an accrual method to calculate entitlement at 12.07% of hours worked in a pay period for irregular-hour workers and part-year workers in the first year of employment and beyond.
Regular-hours workers, who know their hours, will continue to accrue annual leave in their first year of employment as they do now.
In addition, employers may be permitted to calculate holiday pay for irregular-hours workers and part-year workers using the old method of ‘Rolled Up Holiday Pay’ (RHP) which had previously been deemed as unlawful.
Workers will not be able to request that they receive RHP, it will be the employer’s choice and if used they will be required to calculate a worker’s holiday pay as 12.07% of the worker’s total earnings within a pay period. The employer will be required to pay the worker with each payslip, rather than when the leave is taken and the Government expects employers to clearly mark RHP payments as separate items on each payslip.
These proposals will affect companies whose new holiday year entitlement starts from 1st April 2024 onwards and GLX will be following the progress of these proposals.
You can read more about the proposed changes on the link below and for further information please don’t hesitate to get in contact with the payroll team at GLX to discuss how these changes may affect you and your business.