VAT reduced to 5% on campsite fees
VAT is to be reduced to 5% on campsite fees from next Wednesday, a nice saving.
Comments
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Well, I didn’t see that one coming. All the site prices will need amending.....
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It's going to be interesting to see how the club deals with this - what happens for example in you arrive and pay this weekend for a 2 week stay ? Potential saving of £3.75/night saving on a currently £30 a night site so will add up on a longer stay.
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I guess the Club will expect you to donate it to help them out. I have paid up front for a commercial booking but it was a good deal and I will not be asking for anything back unless it is a very poor site which I very much doubt will be the case.. CLs may well not pay VAT.
peedee
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It's not as simple as that, sites will have to re-invoice as they will not legally be able to charge more than 5% VAT. You have a contract in place so they will have to refund you the excess, what you then choose to do with it is of course up to you. This is going to be quite an admin burden for sites I suspect.
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Back in the days when I worked, it used to be the case that VAT was charged at the rate applicable at the date of the invoice which wasn't necessarily the same as the date of supply of the goods or services. 🤷🏻♂️
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£1.75 in every £20
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the taxpoint date for services is the date the service is completed - make of that what you will.
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These days, I’d rather not bother, thanks🤣🤣🤣
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I think VAT on a site fee is charged when you arrive and pay for your pitch so if you arrive before next Wednesday you will pay 20% at that time and that is what will go to the government. If you arrive from next Wednesday you will be charged 5% VAT
The club will not make a penny out of anyone hoping to be generous and waiving the difference. VAT at 5% or 20% is payable to the government1 -
Well thats a welcome £80 saving on my booking in August.
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Will the Club be re-scheduling my bookings for later this year or will it be left to the Site Staff to carry out the adjustments. The savings on our September holiday alone will pay for another 4 nights away. As an OAP on a budget it means we can get more use out of the Club and our caravan. Which ever the Club will benefit as we will have more to spend on our bookings. Having caravanned for 40 years we now like to 'get away' as much as possible. More money in our pockets means more money circulating in the economy.
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If you go into "my bookings" on your proifile you can if pitches available amend your booking for September
i would not expect anything other to be done ,as apart from you who knows you want an extra four ?nights
and as you have not paid yet do it before others get there in first
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I doubt the club have had chance to start thinking their way through it yet.
NB. The VAT reduction is for a period of 6 months so nobody should start counting their chickens for next year.
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It only applies for six months, but for some it might be worth cancelling a future booking now, and rebooking it to show a new booked date, which will be at the new price! If there’s space of course......
It makes those vouchers a tad more worth having. If you use them in next six months.
Edit we crossed posts Tinny!😁
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I am not altogether sure of the purpose of the VAT cut in the sectors it applies to. Is it to increase demand or is it to increase profitability? I would have thought that reducing prices is not necessarily going to increase demand like it would in ordinary circumstances. Pubs and restaurants need to be able to increase the number of customers they can service which current spacing makes difficult so there could be an argument the VAT cut is there to help keep the business afloat rather than reduce prices which might not have the result of increasing demand. Am I barking up the wrong tree here?
David
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It's to increase demand. It may work. As already posted on here some may take the VAT saving and spend it on a few extra nights, thus the campsite will benefit rather than HMRC.
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I can't say a VAT discount is going to encourage us to go away for more nights this year, not as yet anyway. At the moment we have only a handful of nights booked and a few pounds off isn't going to encourage us to get anywhere near our normal 90 nights plus, we don't even have 10 booked in total at the moment.. It's all about safety and we are as yet, not totally confident, not by a long way. Similar to the discounts and eating out vouchers. Life's too short as it is, don't want to shorten it further thank-you
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Will this reduction also apply to CLs? I don't know whether or not they have to pay VAT to HM Gov against the income received from the CL. If they do, there must be an element in the fees charged to guests to cover this one would expect although it is never shown as a separate figure. For the smaller CL concerns VAT is probably not applicable but for CLs on farms they must surely qualify for VAT as the CL is just one of their income streams - unless farms are totally exempt - I just don't know.
Whatever the answer is I won't worry about it. It only amounts to £0.80 per night for my next trip out. As CLs have had no income at all for the last 3 to 4 months I'm happy not to expect a reduction. After all, I have, so far this year, saved almost £600 in cancelled trips away plus the diesel I haven't used.
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If the pub and restaurant trade want business from me they will have to introduce "Two Metre" separation nights. Even before this all kicked off I would not have been happy if an establishment tried to put me one meter away from people not in my company.
The site nights that fall into the 15% VAT period should be charged at 15% and those that fall into the 5% period at 5%. For a booking that spans the change the simple book keeping solution for The Caravan Club would be to split any booking that spans the change into two bookings, but no doubt a far more complex solution will be found!
However they implement it, the approximate £35 off this month's trip will be very welcome.
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most CLs are not VAT registered as they don't reach the £85,000 pa turnover registration threshold. There are of course some exceptions to this.
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Instead of all the speculation maybe the Caravan Club can explain fairly soon what that means for people who have already booked holidays for the period when VAT has been reduced to 5%.
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I have been in contact with the club today and was advised that they would call me later today. They have just called me back and they say it has to be discussed at a higher level as some companies will not be passing the V.A.T cut on. Fortunately I now have a full pdf copy of the website stating that pitch fees include 20% v.a.t so as a v.a.t registered company this should have no affect on the club as this money is passed onto the government anyway. If they do not pass the saving on I will seek legal advice on how to report this to the correct authorities.
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As the Gvernment has allowed Companies to decide whether to pass on the VAT reduction, it will be interesting to see if the Club, which is a members club, will decide to do so.
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,other wise you would not have posted as you have ,but as usual on here not expect a retraction of your post
