UK’s New Policy Measures and Configurations in Zoho Books (UK Edition)
Dear customers,
As Covid-19 has adversely affected businesses of all shapes and sizes, the Government of United Kingdom has introduced several measures to keep people in work, protect their incomes, and support businesses.
In the Government’s second phase of response, it has focussed on protecting jobs with the Plan for Jobs program which includes several policy decisions with various schemes. Among them, one of the policy decisions deals with the hospitality and accommodation businesses. For businesses in this sector, the Government has announced temporary VAT cuts and has offered discounts to spur consumption and growth.
What are the new policy measures?
The Government has introduced the Eat Out to Help Out scheme that will offer a 50% discount (up to £10) to every diner on their meal, at any participating restaurant, café, pub, or eligible food providers. Diners can use this discount unlimited times and it will be valid Monday to Wednesday on any eat-in meal for the month of August 2020 across the UK. All businesses that participate in this scheme will be fully reimbursed for the 50% discount.
Temporary VAT cuts have been announced for food, non-alcoholic drinks, accommodations, and attractions from 15 July 2020 to 12 January 2021 to support businesses and jobs in the Hospitality sector. Across the UK, the reduced 5% of VAT will be applied on supplies of accommodation, admission to attractions, supplies of food and non-alcoholic drinks from cafés, restaurants, pubs, bars, and other food providers. Read more about policy decisions from the UK Government’s website.
How does Zoho Books handle these changes?
If you’re a business in the Hospitality sector, you can accommodate these changes in Zoho Books easily. Here’s what you need to do:
1. Update VAT rate to 5%
You can edit the applicable items and update their VAT rates to 5%. To edit:
1. Go to the Items module in the left sidebar and select Items.
2. Select the item that you want to edit.
3. Click the Edit icon on top of the page.
4. Select the VAT rate as 5%.
5. If you want to update the VAT rate of this item in the recurring transactions, check the Update these fields in all the active recurring invoices option at the bottom of the page.
6. Click Save.
If you want to update the VAT rate of multiple items at once, you can select multiple items and bulk update the VAT rate to 5%. However, please note that the recurring transactions will not be updated with the new VAT rate when you bulk-update.
2. Configure discount preferences
Zoho Books allows you to configure discount preferences so that you can apply the discount at the item level or at the transaction level. Based on your preference, you can apply the 50% discount on the sale. To configure:
1. Click the Gear icon at the top right corner and select Preferences.
2. Under General, scroll down to the Discount section and select your preference.
3. Click Save.
Also, you can create price lists with the appropriate discounted price and apply them to the sales transaction.
If you need further assistance, comment below and we are here to help you.
Sincerely,
Alen J. Abraham
The Zoho Books Team
Alen J. Abraham
The Zoho Books Team