As if the turmoil of Covid and Brexit weren’t enough, our drinks industry is facing a new challenge. How to innovate faster than it’s ever done before.
The last 18 months has been difficult for most sectors; however, one industry that has had to adapt and be more agile than most has been the hospitality sector. Firstly, they had to deal with lengthy periods of lockdown that initially closed many premises completely. Even as the lockdowns eased and the restrictions began to be lifted, restaurants and other hospitality businesses have had to be increasingly innovative to continue to operate.
Following the introduction of IR35 legislation in April to the private sector, there has been some concern that fishermen operating through their own personal service companies (PSC’s) would be caught under these new rules. The impact of the legislation for those within the IR35 rules means payments made to the PSC will now be operated via payroll with Income Tax and National Insurance Contributions deducted at source rather than the much lower Corporation Tax rate applying to profits within the PSC. This will also remove the opportunity for contractors to draw dividends from their PSC from inside IR35 income, which would have seen them benefit from lower tax rates. Businesses which engage with PSC’s are responsible for assessing the status under IR35 unless they qualify for the Small Companies Exemption.
There is a big push to ‘shop local’ to help reduce the carbon footprint of our food and drink products from field to plate.
It is so odd to think it has been over a year since the last of the Scotland Food & Drink Leadership Dinners, a chance for industry leaders to catch up and discuss the key issues facing their sector, whilst celebrating all that Scotland’s food and drink produce brings to the world.
Following Rishi Sunak’s budget announcement earlier today the temporary reduced rate of 5% VAT for the Tourism and Hospitality Sectors has been extended for a further 6 months until 30th September 2021. Furthermore, an interim rate of 12.5% will be introduced for the sector from 1st October 2021 until 31st March 2022. Thereafter the standard rate of VAT will apply again.