Five EPOS checks operators should make before 25 June
Lolly, the hospitality technology specialist, is urging hospitality operators and contract caterers to review their EPOS systems ahead of the temporary children’s meals VAT cut, which comes into effect on 25 June 2026.
From 25 June to 1 September 2026, qualifying children’s meals will be subject to a reduced VAT rate of 5%, down from the standard 20%. However, the change is not simply a pricing update, with eligibility depending on how meals are marketed, presented and sold.
For restaurants, cafes, hospitality groups and contract caterers, this means children’s menu items, product categories, VAT rates, receipts and reporting processes should all be checked before the new rate comes into effect.
Peter Moore, CEO at Lolly, said: “The children’s meals VAT cut is a welcome move for families and a positive opportunity for hospitality during the busy summer period. However, operators need to ensure the change is implemented accurately, consistently, and without creating extra pressure on front-line teams.
“This is not just a finance update. When eligibility depends on how meals are marketed, presented and priced, EPOS configuration becomes central to getting it right. The priority now should be to check menus, categories, VAT settings and reporting before 25 June, rather than leaving changes to the day itself.”
Lolly is recommending operators to make five key EPOS checks ahead of the VAT cut:
- Review children’s menu items: Confirm which meals are eligible and ensure they are clearly identified as children’s meals within menus and systems.
- Check product categories and menu structures: Make sure qualifying products sit in the correct EPOS categories to avoid confusion at the point of sale.
- Update item-level VAT settings: Apply the reduced VAT rate to qualifying products at item level, rather than relying on manual overrides or staff judgement.
- Test receipts and reporting: Check that receipts, sales data and reports reflect the correct VAT treatment before the reduced rate goes live.
- Ensure consistency across sites: Hospitality groups and contract caterers should confirm that the same rules are applied across different locations, menus and operating environments.
The issue is particularly important for larger hospitality businesses and contract caterers, where multiple sites, varied menus, different customer groups and inconsistent naming can make last-minute changes harder to manage.
Integrated hospitality technology can help operators make updates centrally, reduce manual workarounds and maintain cleaner reporting across the business. For Lolly users, VAT rates can be updated to 5% against a children’s menu department or individual products in LollyHQ ahead of the change.
Using LollyHQ’s scheduled communications feature, updated rates can then be pushed automatically to tills ready for 25 June, removing the need for manual updates on the day itself.
Moore added: “Hospitality operators are under enough pressure during busy summer trading. Technology should make operational changes like this simpler, giving teams the tools to update centrally, reduce manual intervention and maintain confidence across every site.”
Lolly is also reminding operators to plan ahead for the end of the temporary reduction, with qualifying products returning to the standard 20% VAT rate from 2 September 2026.
Operators should refer to HMRC guidance or speak to their tax adviser where needed. This above commentary is intended as operational guidance only, and not tax advice.
