13/06/2026
Sorry for the long post, but I'd like to talk about something that has literally given me sleepless nights on numerous occasions.
VAT is becoming one of the biggest threats to independent hospitality businesses like Holy Dough.
Many people assume VAT is a tax paid by businesses, but it isn't.
For every pizza or pasta dish we sell, we collect VAT from our customers and pass it straight to the Government.
They don't help us earn it....they weren't here making the dough, sweating behind the ovens, answering the phones and all the other stuff we have to do to keep a roof over our head and feed our families.
We don't get to keep it. We literally have to add it to our cost, store it in our account and pay it to the government.
The challenge for businesses like ours is that many of our ingredients are zero-rated or exempt from VAT when we buy them, but we still have to charge 20% VAT on what we sell. That means the full burden falls on the final price paid by you, the customer.
The UK has the second highest hospitality VAT rate in Europe, with Denmark at the highest at 25%, but Germany at just 7%.
As costs continue to rise, we're left with three choices:
❌ Put prices up further
❌ Accept lower margins and struggle to survive
❌ Close 😞
None of these are good for local independent businesses.
Holy Dough employs local people, buys from local suppliers where possible, supports local events and keeps money circulating within our community. Yet independent hospitality businesses across the country are closing every week under the weight of rising costs and taxation.
That's why we're supporting the VAT's The Problem campaign, which is calling for hospitality VAT to be reduced from 20% to 10%.
A lower VAT rate would help businesses invest, employ more people, keep prices lower for customers and give independent pubs, cafés, restaurants and pizzerias a fighting chance.
This isn't about making owners rich, it's about keeping local businesses alive.
If you'd like to support the campaign, please take a moment to learn more and sign the petition.
www.vatstheproblem.co.uk
Thank you for supporting small independent businesses like ours ❤️
