VAT reduced to 5% on campsite fees
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Thanks Corners, I will take my time and get my head around that.😁
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Not quite. Your method calculates 20% of the end result, not of the starting figure. Try this:
340.20 is 120% of the basic price so divide 340.20 by 120 then x by 100 = 283.50 to arrive at the basic price excl of vat.
Then 283.50 + 5% = 297.675 gives you the new price.
The difference is a reduction of 42.53. 12.5% of 340.20 = 42.53. So, deducting 12.5% from the starting price provides a quick and simple method of arriving at the new figure.
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Yes you are correct as in this case 120 pence = 120 % so 1 p = 1%
What you pay when VAT is included is 120% of the real cost of the item. That is 100% + 20%
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We were crossing, Corners. Sorry.
We might have a few 💡moments 😀
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Wow! Almost 290 posts, mainly on a basic maths lesson. Just relax everyone and accept that you will be paying HMCR 12.5% less, the Club still get the same money, the government lose out, we gain, though they hope we will spend more elsewhere to compensate. Anyway off to Pembrey on Sunday to continue where we were abruptly ended back in March. Happy days.
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Posted on 08/07/2020 13:03 by birderbilly "VAT is to be reduced to 5% on campsite fees from next Wednesday, a nice saving."
If only !!
We are thinking of a visit to Dorset (East Fleet Farm) and/or Devon (Mill Park). According to their websites, Mill Park has not reduced their prices and East Fleet has not only not reduced their prices but actually quote an increased price for a serviced pitch from £25 to £30.
We won't be using either of these. We thought the VAT decrease was to encourage more visitors - clearly (at least in these two cases) it is to bring more income to campsite owners.
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East Fleet has not only not reduced their prices but actually quote an increased price for a serviced pitch from £25 to £30
That wouldn't be a bad price for a service pitch at this time of year. According to the price list I pulled up a service pitch varies from £25 low to £43 peak. Currently until 23/7 £37.
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I am not making it up !!
The dummy booking I made was for 7 days starting 30 Sept. The result was £210 (£30 per day)
They are still ripping us off at their (separately) quoted £25 as this was their rate with VAT at the previous rate of 25%
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VAT at 25% - now that is a rip off 😀
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The club has decided that VAT reduction will apply only to pitch prices for BOOKINGS from 15TH July. This means that if you booked earlier than 15th July as we did (booked in April for a week on a super pitch at Chatsworth in October) you will not get the VAT reduction. Thats quite a lot of money. So this means that as far as the club is concerned the 6 month period of reduced tax applies to all bookings made in the 6 month period of 15th July 15th January 2021.
We can save a lot of VAT if we get our bookings made at the reduced VAT rate before Junuary 2021!
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Are you sure about that. I have just received an enjoy your holiday type email for a booking made in April and it states.
"Great news - stay for less in 2020
Only pay 5% VAT on your booking. A 12.5% discount will be applied to your booking when you arrive and pay for your stay on site."Somebody posted on here about having to go back to reception on the15th to pay for the second half of their stay, so as to benifit from the reduced rate. Surely their booking was made prior to the interest rate change.
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There are those who have and those who havent, so I am not sure. This is the club's statement:
"In response to UK government guidance, we’ve reduced our Club campsite prices in line with the recent VAT reductions. This means that you will only pay 5% VAT on all campsite bookings from 15 July 2020! All you need to do is book your holiday as normal, and the discount will be applied when you arrive on site".
"applied" to what period ? is the question.
The other club has clarified it to me today as "Booking date."
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on all campsite bookings from 15 July 2020
It doesn't say on all bookings made from 15 July 2020. Therefore I interpret that as bookings made at any time, for stays from 15 July 2020. This is backed up by some posts on here which clearly stated that when people have arrived before the 15th, they had to pay up to the 15th, then call into the office to pay the reduced rate from the 15th. I think they could have made it clearer though.
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When the in laws were in business, VAT was always applied at the rate in force at the point of sale, so if money changes hands after the 15th, it will be 5% up to the cut off date.
So back to normal after that, regardless of when you book.
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That's really not fair in my view, and I suppose that's why some should be careful what they wish for in term of deposits?
So if you booked a CCC site now during this reduced VAT period for after it (say in a year) would they charge you the 5% for that?
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Evening
We had 45 arrivals today and interestingly some of those bookings were made last winter. The discount was still applied. It applies to everyone that arrives / arrived on site post 15/7/2020
JK
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Well spotted Corners. I was coming to that. If the C&CC apply VAT at the point of sale (when they take the deposit) they are going to get a phenomenal 2021 booking because they will have everything available for the year booked by 15th January at the reduced VAT rate.
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well a bit of a gamble, VAT for sites might 2% by then
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The time at which a supply of goods or services is deemed to take place is called the tax point. VAT must normally be accounted for in the VAT period in which the tax point occurs and at the rate of VAT in force at that timeThe basic tax point for a supply of services is the date the services are performed..
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) Bookings made after July 15th will get the reduction.
