Epos Now CEO backs hospitality tax cut, pushes for VAT relief

Epos Now founder and CEO Jacyn Heavens welcomed the UK's 20% business rates cut for hospitality, calling it a step forward for small businesses on high streets. He is now pressing Prime Minister Andy Burnham to extend relief with a VAT cut for SMEs.

Why it matters: - The business rates cut could ease costs for pubs, clubs and music venues after years of pressure from rising expenses. - A VAT reduction would go further by directly lowering a major tax burden for small and medium-sized businesses across hospitality and retail. - The policy shift highlights a broader push to rebalance support away from online and large-scale operators and toward high street businesses.

What happened: - Jacyn Heavens, founder and CEO of Epos Now, welcomed Prime Minister Andy Burnham’s 20% cut to business rates for hospitality businesses. - The policy gives pubs, clubs and music venues a 20% reduction in business rates. - The measure also raises the threshold for independent hospitality, leisure and retail businesses. - Reports say the cuts would be funded by higher business rates on large out-of-town distribution warehouses operated by companies such as Amazon.

The details: - Heavens called the move a lifeline for small and medium-sized businesses squeezed by rising costs and what he described as an outdated tax system. - He said the announcement shows a government willing to rebalance the scales in favor of independent hospitality and retail businesses. - Heavens argued that business rates reform is only a first step and said the government should cut VAT for small and medium-sized businesses. - He said VAT is the single biggest lever available to ease pressure on businesses that employ millions of people across the country. - Heavens has previously written to then-Chancellor Rachel Reeves to call for a VAT reduction for SMEs. - He has also backed Chef Tom Kerridge’s VATs the Problem campaign, which seeks to cut hospitality VAT from 20% to 10%. - Epos Now says it supports more than 100,000 merchants worldwide and provides integrated payments, point-of-sale, capital and business management software. - The company says it is a member of the UK's Unicorn Council and is valued at more than £1 billion.

Between the lines: - Heavens is framing the business rates cut as welcome but incomplete, using the moment to keep pressure on government for a broader tax reset. - The focus on VAT signals that the hospitality sector sees property taxes as only one part of a larger cost problem. - The mention of warehouse rates suggests the policy debate is also about shifting the tax burden from local businesses to larger online retail infrastructure.

What's next: - Heavens is urging Burnham to commit to a VAT reduction for small and medium-sized businesses. - Further debate is likely over whether business rates reform should be paired with wider tax changes for hospitality and retail. - The VATs the Problem campaign is likely to remain part of the broader push for lower hospitality taxes.

The bottom line: - Epos Now is cheering a cut for hospitality, but its founder wants the government to go further and lower VAT for SMEs.