Why popular Hitchin burger joint Cafe 77 is calling for Government to cut VAT bill in bid to boost hard-working businesses

By Layth Yousif

20th Mar 2023 | Local News

Sorry folks, but for a just second we need to discuss VAT say the popular team at Hitchin burger joint Cafe 77. CREDIT: Cafe 77 insta
Sorry folks, but for a just second we need to discuss VAT say the popular team at Hitchin burger joint Cafe 77. CREDIT: Cafe 77 insta

A popular Hitchin business is calling on the Government to cut tax in order to 'weather the storm' of the cost of living crisis as well as exorbitant VAT bills.

Cafe 77 on Bancroft is renowned for the quality of its burgers - but the Hitchin burger connoisseurs have had to turn their attention to tax.

The team at the acclaimed restaurant ask: Did you know that 20p of every £1 that goes into our till is paid to HMRC as VAT.

They explain that most hospitality businesses can't claim back much to offset this, as raw produce such as meat, cheese and eggs, doesn't have any VAT.

However, when businesses cook such produce and serve it to customers, businesses are required to fork out 20 per cent - because they have 'added value' to the product.

The team at Cafe 77 posted on their Instagram feed: "We're going to talk about tax. Sorry folks, but for a just second we need to discuss VAT.

"Yes it's a really unsexy topic - trust us, we'd much rather be talking about cheeseburgers - but small hospitality businesses locally and nationally are struggling right now (primarily because of the 20% VAT rate) and we need your help to bring the subject to debate in Parliament. 

"If every one of our followers signed this petition then the Government would at least have to give it a formal response.

"If you have a minute to sign this, please do. It could be the difference in local hospitality businesses that you love surviving longterm."

The tax equates to £1 of revenue - not profit - and that's before hard-working Hitchin businesses such as Cafe 77 pay suppliers, staff, utilities and other taxes.

Cafe 77 and many other businesses across Hitchin and up and down the land say: Small hospitality businesses need your help to survive and are campaigning for a temporary VAT reduction to 'weather the storm'.

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