Children’s Meals VAT Cut 2026: What to Check by 25 June

Children’s Meals VAT Cut 2026: What Hospitality Operators Need to Check Before 25 June to Avoid Operational Disruption During the Busy Summer Period

From 25 June 2026, qualifying children’s meals will be subject to a temporary reduced VAT rate of 5%. While the change may seem straightforward, hospitality operators need to ensure their menus, EPOS systems and reporting processes are ready before the new rate comes into effect.

Eligibility starts with the menu

The reduced rate does not simply apply because a meal is purchased for a child. Eligibility depends on how the meal is marketed, presented and sold. It is important that operators review their children's menu and ensure qualifying items are clearly identified and configured correctly within their systems.

Key EPOS checks before 25 June

To avoid issues once the new rate takes effect, operators should review:

• VAT rates assigned to children's menu items

• Product categories and menu structures

• Item-level tax settings

• Receipt and reporting accuracy

• Consistency across multiple sites and locations

For hospitality groups and contract caterers, central oversight is particularly important to ensure the same VAT treatment is applied everywhere.

Avoid business interruption

Temporary VAT changes can create unexpected complications, especially when businesses rely on manual processes. Common issues include:

• Inconsistent menu naming

• Manual VAT overrides

• Last-minute system updates

• Differences between sites or venues

Taking time to review these areas before implementation can help prevent operational disruption.

Why technology matters

Changes like the children’s menu VAT reduction highlight the value of integrated hospitality technology.

When menus, EPOS systems and reporting tools are connected, operators can update VAT settings more quickly, maintain consistency across locations and reduce the risk of manual errors. This becomes even more important for larger hospitality businesses managing multiple sites.

What operators should do now

Before 25 June, hospitality teams should:

• Review children's menu items

• Confirm eligibility requirements

• Update EPOS VAT rate settings

• Test receipts and reporting

• Brief site managers and staff

• Schedule the switch back when the temporary rate ends

For Lolly users, preparing for the VAT change is straightforward. Operators can update the VAT rate to 5% against their children's menu department or individual products in LollyHQ in just a few minutes, a day or two before the change takes effect.

Using LollyHQ's scheduled communications feature, the updated rates can then be automatically pushed to tills ready for 25 June, removing the need for manual updates on the day itself.

It is also worth setting a reminder to revert qualifying products back to the standard 20% VAT rate from 2 September, when the temporary reduction comes to an end. Preparing early can help ensure a smooth transition and minimise disruption during the busy summer trading period.