On Thursday, September 12, Wetherspoon’s pubs will cut prices on food and drinks by 7.5 percent for one day. This event, called Tax Equality Day, highlights the unfair taxes pubs face.
While pubs pay 20 percent VAT on food and drinks, supermarkets pay no VAT on food, giving them an advantage to sell alcohol cheaper. Wetherspoon’s aims to show how a permanent VAT cut to 12.5 percent could help pubs thrive, create jobs, and compete fairly.
Wetherspoons Tax Equality
In Scotland, pubs are struggling with unfair VAT rules compared to supermarkets. On Tax Equality Day, Wetherspoons lowered their prices for one day to show how much customers could save if pubs paid less tax.
For example, if customers spent £10, they would only pay £9.25 because of the reduced tax.
Unlike supermarkets, which enjoy zero VAT on food and non-alcoholic drinks, pubs have to pay 20% VAT, making a big comparison in costs. This saving helped show how much better spending could be if pubs had the same tax breaks as supermarkets.
Tim Martin’s Bold Statements on Fair Taxes for Pubs
Tim Martin, the founder and chairman of JD Wetherspoon, said:
“ The hospitality industry faces a serious challenge due to the vast disparity in tax treatment. Supermarkets enjoy zero VAT on food sales, while pubs, bars, and restaurants must pay 20% VAT, making it hard for them to compete. “
“ This tax break helps supermarkets lower the price of beer. “
“ Pubs have faced fantastic pressure for decades due to tax disadvantages, putting the hospitality industry at a disadvantage as they effectively subsidise supermarkets, which makes little sense for struggling local businesses. “
“ A VAT cut to 12.5% could help pubs, bars, and restaurants grow and stay open. It would give them a chance to invest in better services, create new jobs, and continue serving their communities. Without this change, many of these places might have to close, which would hurt the hospitality industry. “
“ On Thursday, 12 September, customers at Wetherspoon’s pubs got to enjoy lower prices on food and drinks. This was done to show how unfair taxes hurt pubs compared to supermarkets. Wetherspoon’s wanted to send a message to the chancellor about creating fairer tax rules to support the hospitality industry. “
In Scotland, due to local licensing regulations and restrictions, discounts on alcohol may not be available in participating J D Wetherspoon free houses. J D Wetherspoon plc reserves the right to withdraw or change any offers at any time without notice.
Wetherspoons Sales Rise, Driven by Food Demand
Wetherspoons recently reported that like-for-like sales rose 5.1% over 25 weeks to January 19, compared to the same period a year earlier, with food being the key driver, increasing 5.6% year on year. The bar segment also saw growth of 4.5%, though this was partially offset by a 6.5% slump in hotel rooms.
Wetherspoons further highlighted that sales accelerated during the Christmas period, growing 6.1% in the three weeks between December 16 and January 5, reflecting strong customer demand despite challenges.
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Frequently Asked Questions
Q. Does Wetherspoons make a profit?
Yes, JD Wetherspoon reported an operating profit of 25.7 million British pounds for the 2022 financial year, which ended in July. This profit was generated from its pubs across the United Kingdom and Ireland.
Q. How to get a VAT receipt from Wetherspoons?
To get a VAT receipt from Wetherspoons, simply visit the pub or hotel where you made the purchase. You can contact the location directly by using the contact details provided on the Wetherspoons web page. Search for the specific pub or hotel location and click on the relevant details to find how to obtain an individual VAT receipt.