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We operate several pubs and on given nights we have a meal deal such as a pie and a pint on a Monday. From 15 July 2020 the VAT rate will be different for food and alcoholic drinks. If for example we sell a pint for £4 and a pie for £7 but on a Monday we sell together for £10 how do I calculate the VAT on the combination?
I know that I will need to split the value of the £10 and account for VAT at 20% on the alcoholic drink and 5% on the food portion but I'm not sure about the saving we offer.
My first thoughts are that the combined price would ordinarily be £11 split as follows
Alcoholic drink 36.3% (£4/£11) £3.63 gross, vat 20% £0.61, net £3.02
Pie 63.7% (£7/£11) gross £6.37, vat at 5% £0.30, net £6.07
All food and drink will be consumed on site.
Is that treatment acceptable?