The clarification comes as pressure mounts for wider VAT reform
Brits have been reminded not to miss out on an easy way to save money this summer.
Adults will be able to order children’s meals and still benefit from the Government’s temporary VAT cut this summer. HMRC clarified that the tax break announced by Rachel Reeves to help struggling families applies to the meal itself rather than the age of the person eating it. The move means pubs and restaurants will not have to carry out age checks on customers ordering from children’s menus when the reduced 5% VAT rate comes into force on June 25.
The Treasury announced last month that VAT on children’s meals will be cut from 20% to 5% over the summer holiday period, running until September 1. The measure applies to meals eaten on the premises and is designed to help families with the cost of dining out.
HMRC has now made clear that eligibility depends on how a meal is marketed, priced and presented, not on who buys or consumes it.
That means an adult ordering a children’s burger meal could still qualify for the lower VAT rate, provided the item is clearly sold as a children’s meal. Operators will not be expected to verify the age of customers ordering from a children’s menu.
The clarification could spare pubs and restaurants from awkward confrontations over who is entitled to order from children’s menus. For parents, the savings are relatively modest but could still make a difference over the summer holidays.
A typical children’s meal at a pub chain costs between £4.99 and £6.95. If the full VAT reduction is passed on to customers, a £4.99 meal would fall to around £4.37, saving 62p, while a £6.95 meal would drop to about £6.08, a saving of 87p.
More expensive children’s meals costing £7.95 would fall to roughly £6.96, while an £8.95 meal would cost around £7.83 – saving families more than £1 per meal. HMRC said businesses should judge eligibility using a product-based test. Meals are likely to qualify if they appear on a dedicated children’s menu, are clearly branded as children’s options and are priced or packaged with children in mind.
A meal deal including a main course, drink and dessert sold for a single price can qualify for the reduced rate, as can a non-alcoholic drink included as part of the package. However, optional extras, upgrades and items ordered separately from the main menu will continue to attract their normal VAT treatment. Takeaway meals are also excluded.
HMRC said the reduced rate does not apply to meals simply marketed as smaller portions, lower-calorie dishes or discounted adult meals. Portion size alone is not enough to qualify. The guidance has drawn criticism from some hospitality operators who say the policy favours venues with dedicated children’s menus while excluding family-friendly restaurants that do not offer separate children’s options.
The clarification comes as pressure mounts for wider VAT reform across the hospitality sector. Celebrity chef Tom Kerridge has launched the #VATsTheProblem campaign calling for hospitality VAT to be reduced to 10 per cent, arguing that Britain’s 20 per cent rate leaves pubs and restaurants at a competitive disadvantage compared with many European countries.
