VAT reduced to 5% on campsite fees
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Is there anyone on here that has actually paid VAT? How does it work?
I always assumed you had to show what you had taken in and a piece of software (spreadsheet?) would tell you, and the HMRC, what you had to pay in VAT and you would send that off. It is not done manually is it?
Surely all the club needs to do, and it's probably done by the HMRC, is to change the 20% to a 5%?
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Changing the VAT rate is easy, establishing the rules re the timing of the change in refrence to bookings that straddle the date of the rate change may not be and it is possible that the clubs accounting system may struggle with this.
The final point is that the club may choose not to pass on the VAT saving to members at all, it would do this by putting up it's prices so that the VAT included price remains the same even though the VAT element is less.
We will have to see, but the club will have to make a decision quickly on this as by their own T&Cs if they are going to put the prices up (including for people that have already booked and therefore have a contract) they have to let them know and give them the option to cancel.
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Yes, me but way back in the 1980s almost before spreadsheets and software were invented.
I recall keeping manual records of input tax and output tax and submitting a cheque for the difference to Customs and Excise, as it was back then.
If that was still the way of doing things, it would be an onerous task to do the accounting at the end of each quarter and a rate change would complicate matters further but things will be far simpler today.
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As the change was done to benefit business then, as I see it, businesses have the option of keeping their headline cost and realising more income or dropping prices to increase footfall.
I suspect that campsites such as the CMC Will keep the headline price as it is.
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if its any consolation reverse percentages questions are the higher end grade questions, usually grade 6 or 7 (grade B in old money) and they are always answered very poorly.
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The idea is to stimulate growth in the short term in customer uptake in the leisure and hospitality industries. Whether more people take a holiday or a longer holiday with CAMC is open to question but holidays will be slightly cheaper. It's being done in other countries too.
The way I see it the main benefit is to the end user unless more people go away or visit other venues. If it doesn't increase footfall businesses will still be struggling.
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The point of the VAT reduction is to help businesses lower their overall prices and increase footfall. To keep the total price the same would defeat that object and could be commercial suicide for any business demonstrating such a level of greed as it would make it highly uncompetitive.
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Thanks birderbilly and TW.
I think the idea of the reduction to is generate income for the leisure industry, ie more people will want to go.
If I went into a B&B, hotel... or was going to book such a place I'd expect to see a reduction on their normal advertised price or I wouldn't go.
I've booked a holiday cottage during this period and already paid for it and it will interesting see if I get anything back, I actually doubt that I will.
But the club is in the position that you've made a booking based on one price yet haven't paid for it yet. I expect the club to adjust it prices when you arrive, after all remember that's what happened before, when prices went up and they honoured the agreed booking price. They also changed it the other way when this year's BH was changed, of course that never happened. So they done this sort of thing before?
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The club could increase footfall at weekends if the "late availability" matched the actual sites , it shows this next weekend as no vacancys in Devon/Cornwall , yet a random look at a couple of sites show they both have some availability ,i have not checked other "no availability" areas yet
And they then wonder why "retired wardens" are upset at the latest club restriction
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Hi everyone,
We welcome the UK Governments decision to reduce VAT on camping and are now looking at how this can be applied to members’ bookings.
As soon as we have the full details from the Government we will make the necessary changes and inform members.
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Maybe. I personally would not consider it to be greed after 14 weeks or so of no income for many. I would think of it as some recompense.
Many folk were paid for doing nothing in lockdown and I didn't consider them to be greedy taking money for nowt.
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Thank you Rowena. Good to hear that the club is going to pass on the VAT saving. We will extend our upcoming stay by a couple of days so both the club and ourselves will benefit from this.
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An unexpected possible reduction in site fees has got to be seen as a bonus to those of us who have already booked our sites for August and beyond. I have no doubt that the club will pass on these savings to us and we've resolved to spend any savings made in the local community in restaurants, cafes, attractions or pubs. If we all did this we would all be doing our bit to help the economy and as a club I think it is our duty to do so.
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Yes a bonus for the customer maybe👍
As to spending in the local community restaurants, cafes, attractions and pubs, probably won't be getting my cash👎🏻
My local community will benefit, as I will take all the food I need with me👍
It will still be my duty to stay away from others as much as possible👍 even to the point of cancelling my Aug/Sept bookings if things don't improve further.
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I’m concerned ...sorry . And i hate writing this , but i dont think the saving will be passed onto us at all. Have to say a few people agree with me on the camh chat facebook page too, though sadly comments were switched off there .🤷♀️
I know it should be passed on as per the clubs terms and conditions mentioned earlier in this thread .....but i think there will be wriggle out .
i hope they do pass the saving on ...i think people may leave on mass if they dont .
just my concerns ....😞1 -
From the Home page. On the red banner Select Looking For Advice.
Will you be reducing VAT on bookings?
We welcome the UK Governments decision to reduce VAT on camping and are now looking at how this can be applied to members’ bookings. As soon as we have the full details from the Government we will make the necessary changes and inform members.
HM
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Thanks 🤞🙂
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If Google can be believed ( A big IF I know) The CAMC has a million members, and via the same source 20,000 pitches. Im pretty sure that will include Ireland, Scotland and Wales, and affilliated sites as well. Not at all sure if it includes C.L's.
At best there are 50 members for every pitch. This is all too apparent in the site bookings, where the sites are open, those close to anything are mostly booked with the odd day here and there vacant.
Caused mainly by 'serial bookers' who book up pitches up to a year in advance and then suddenly cancel them within a few days of going with no penalty.
Those at the back end of nowhere are less busy. In the present regime toilets, showers and shops on sites are either closed or heavily restricted, yet the same price still applies.
Because of all this I have seriously considered not renewing, but I then considered the C.L's. Many dont have toilets or showers, but they are well spread around and often closer to things than some sites I can think of and for MUCH less money, You are not surrounded by by lots of people and have some peace and quiet as long as you have some means to travel you are fine.
So maybe this could be the start of a boom for C.L's
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See HM's post and Rowena's on the previous page.👍
It still amazes me that some people automatically think the club will rip them off. True, the club hasn't had a great track record of late but why assume the worst and spread doom and gloom? And what does it say about certain posters? Is there pleasure to be had in such pessimism? Gee, I really hope I don't meet some of you on site😢
For goodness sake, wait and see but don't judge CAMC to be guilty before it's proved😤.
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You think my post is doom and gloom ...you should join facebook . Have a read on the thread there . Mine is positively positive 😆😂
Mutual feeling Tinwheeler. 😱
I hope you stay well tho and enjoy some lovely breaks this year . Take care and stay well 😊
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As I see it the vouchers are just in effect Caravan Club banknotes - a promise to give use of pitch(s). VAT only come into play when they are spent ( torn up in view of a warden on the far side of a screen ). Whatever VAT there was on the issuing and postage would have been included at the time in the charge made.
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Your edited bit at the end is correct ...your voucher buys more than it used to 🙂
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Here you go. Enjoy the reading
"There is a change coming on 1 January 2019 regarding the VAT treatment that will effect any retailer that issues gift vouchers.
You may sell gift vouchers on your website to be redeemed at a later date for goods or services. The VAT treatment of a voucher does actually vary depending upon the type of voucher being issued. There are two types of voucher for VAT purposes:
Single Purpose Vouchers (“SPV”) are currently a voucher that can only be used to purchase one type of goods or services, and the VAT rate is known at the time the voucher is issued by a retailer.
Multi Purpose Voucher (“MPV”) are effectively not an SPV. As they could be redeemed for any goods or services which might have different rates of VAT applied to them, the appropriate VAT rate is not known at their time of issue.
The difference in terms of their VAT treatment is that the VAT is payable on an SPV at the time it is issued, whereas the VAT on an MPV is only payable when it is redeemed.
However the above definition will change on 1 January 2019. An SPV will be a voucher that can be redeemed for a range of goods or services, but the VAT rate for all the items is the same and the pace of supply is known at the time of issue. An MPV is still a voucher than is not an SPV.
For example a voucher that can be redeemed to purchase CD’s is currently an SPV but one that can be redeemed for CD’s, DVD’s or computer games would not be. From 1 January 2019 this will also be an SPV.
The VAT liability for vouchers will therefore be earlier for many vouchers that are currently issued. In addition to having to account for VAT earlier vouchers that are currently MPVs that will become SPVs will no longer benefit from what is often called “breakage” (non redemption). If an MPV is not redeemed no VAT is due. So for vouchers that are currently MPVs that will become SPVs VAT will be due regardless of redemption."
https://www.elverconsultancy.co.uk/changes-to-vat-treatment-of-gift-vouchers/
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As I see it, the chancellor reduced the VAT to encourage the public to get out and spend, thus intending the extra cash to go to the public, therefore the club has a moral duty to reduce the site fees by 15% and pass the reduced fees on to it's members as intended
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It looks as though the Club are quite happy to pass on the savings to Members. (See Rowena’s Post) As someone who had a booking made very early one year, that was subject to one of the mid season price changes, I can confirm that the Club had a system in place to deal with this, quickly and efficiently, so I have no doubts that the same will happen this next week. EPOS tills are very easy and quick to change, just requires the security to access the change function. This might be at Warden level, it might be at Area Manager level, or if really clever, linked to a central system. The vouchers will just stay as they are, a monetary unit.
So for all those getting their information via Twitface, Huawei won’t be infiltrating the Club and those 5G masts won’t prevent you getting your discount......😉
All you have to do now is keep your masks on😷
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