4% VAT on 29th Night of stay onwards

[latticelodge]

Hi,

We're changing business model from 2027 to primarily an extended stay hotel - to meet demand for a decade long local construction project.

We're VAT registered, but for extended stays of 29 consecutive nights or more, the VAT reduces to 4% (being 20% VAT on the 'additional services' included in the room price, which are deemed by default to be 20% of the room price by HMRC).

An AI search seems to give instructions on how to set up VAT in Beds24 as 4% on the 29th night of a booking onwards, but I can't follow it (the settings it mentions aren't where they say they will be).

Can this be done, and if so, how please?

Thanks,

Martin

[melbury.elliot]

We split it into 3 charges:

• Hire charge (first 28 nights) - standard rated
• Hire charge (@ 80% of remaining nights) - zero rated
• Service (@ 20% of remaining nights) - standard rated