Our industry is in dire straits. A recent UK Hospitality report indicates that a quarter of hospitality businesses have completely run out of cash. Restaurants are closing every day.
The reasons are manifold. If Covid and Brexit weren’t enough, sky-rocketing energy prices, rising rent and food bills, staff shortages and a Himalayan cost-of-living crisis have just proved too much.
Everyone in our sector is biting their nails for next week’s Budget. Industry bodies have been campaigning hard for a reduction in VAT rates and a higher VAT threshold, amongst other demands.
Let’s talk about VAT. It’s not a sexy subject, but a lot of people don’t don’t even know what it is (we were like that once – oh for that blissful state of ignorance).
Here are the bald facts: any business whose annual taxable turnover exceeds £85k is required to register for VAT. Different VAT rates apply to different goods and services. The standard VAT rate of 20% applies to most industries, including hospitality.
It also applies to the construction trade. If you’re a builder, the transaction is pretty straightforward. You are charged 20% VAT at the builders merchants on the materials you purchase. When you quote for a job, you then add VAT at 20% to your fee and reclaim it.
With food it’s a whole different story. The hit that’s taken by the restaurant is not spelled out in the menu like it is on the invoice from your builder, so the customer isn’t necessarily aware that VAT is being charged. Worse still, when the chef buys in raw produce this is not actually VAT-able, but as soon as they turn it into hot food then VAT is payable to HMRC at 20%. So the restaurant has to charge it, but rarely can they reclaim it.
Here’s something you may not know about our freezer food: when you buy Taste Tibet dishes chilled they’re not VAT-able because you are adding the value when you reheat them at home. This is why you’ll find them more affordable than the same dishes on our hot food menu: we can pass that 20% saving along.
Times are tough and we’re seeing much higher sales of our chilled food than we used to. Have you tried our range of momos and curries from the freezer? Reheating them at home couldn’t be easier and the taxman couldn’t be less interested. Win/win.
We’re open all the usual hours this week, including Sunday, as follows:
Wednesday – Friday: 5-9.30pm (dinner only)
Saturday and Sunday: 12-3 (lunch) / 5-9.30pm (dinner)
Our menu is on the website now – check it! Swing by for hot food or freezer meals. Or if you’d like to make your own Taste Tibet dinner, come grab some chilli oil and a copy of our cookbook – all our secrets can be found inside.
And stand by for some very exciting delivery news, landing imminently! We’re teaming up with one of the big Oxford deliveries partners and we’re aiming to kick things off THIS WEEK. Make sure you follow us on our socials so that you can be the first to order – hot food and chilled: both will be available for home delivery when it launches 👀
Looking forward to seeing you soon!
Julie and Yeshi
Opening hours this week:
Weds – Fri: 5-9.30pm
Sat / Sun: 12-3pm 🥢 5-9.30pm
☏ 01865 499318
Do you love the Taste Tibet cookbook? Please leave us an Amazon review! 🙏🏽
