VAT reduced to 5% on campsite fees
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The C&CC state that the VAT reductions will be passed on to bookings made between July 15th 2020 and Jan.12th 2021 so don't expect to benefit on other future bookings! They have, apparently, adjusted all their prices accordingly.
I felt quite miffed to have missed out on the VAT reductions with C&CC, they will do quite well out of me between now and November...
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That might incur forfeiture of deposits?
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I'm confused on this or didn't realise it worked this way. I can see that a full payment made before the 15th would not get any reduction as the VAT was 20% when you paid.
But... if you paid a deposit say of £10 back in January for August, is there any VAT on that deposit?
Then you still owe the rest of your fee, why should the VAT of the rest that you owe be based when you paid the deposit? I mean it must do but it sounds strange?
When does the CCC or whoever, pass on the VAT on your remaining fee?
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Good question, do they have the 31 day cancellation in place or is it still relaxed.
I suppose if you have future bookings (more than 31 days away) then you could cancel and rebook. I haven't got anymore in the diary for this year yet, as I usually leave it till nearer the time.
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I had thoughts about cancelling and re-booking, as suggested, but paying or losing deposits and maybe also losing a pitch I wanted seemed pointless. I'm not feeling very charitable over this one but I think both the clubs will be making losses so I'm going to shrug it off!
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On the day we arrived on the recent C&CC site the remaining site cost was debited from our account. We received an email on the day detailing the deposit and remainder and the reasons why the VAT reduction hadn't taken place ie it was a booking contracted at the price before July 15th.
I have to say I was surprised at this as there are details on the gov.uk site about the VAT reduction on forward bookings and deposits that indicated that the lower rate could be used. I'll read through it again if I can summon up the energy and interest in case I missed something!!
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It strikes me, Brue, that if C&CC apply the rule in that way to bookings contracted prior to 15 July, then they should also apply the same logic to bookings contracted between 15 July and Jan 2021 but taking place post Jan 2021. They can’t have it both ways.
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well it sounds unfair, not on the CCC's part as whatever the VAT rate, they are not holding on to it I assume? but against the idea of the reduction in the first place.
Sorry to hear you're 'missing out'.
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I read the Governments VAT guideance notes and it gradually became clear to me that there are choices for some businesses so they may decide which sytem to use for VAT accounting. If the C&CC are using the sytem which makes the tax point the time of paying a deposit, then they have to accept there will be lots of pitches booked and deposits paid before January 2021 for use well after that date. They may also decide to trouser the VAT saving for pitches occupied after January 2021.
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It's complicated but obviously they can offer the reduced rate for some who booked later and for pitches up until 12/1/21. After that I suspect further price adjustments as site prices rise in 2021, how that affects the costs for those who book now is anyone's guess, will they stick to the present prices? When I get time I'll have another rootle around on the C&Cc web site. Meanwhile CAMC are offering the VAT reduction on all bookings and that's good.
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The C&CC statement I have read today is very clear.
The reduced VAT applies to pitches booked and occupied from 15th July to 12th January. "Booked and occupied" means they have withheld some of the VAT they have saved.
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Ha,
They need to recoup that 3 months membership rebate somehow lol
JK
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We have just left East Fleet, I did enquire about the VAT rate been charged incorrectly at 20%, I was told they would not be offering any refunds and due to them having a poor year, they would be using the discount to fund their losses.
I would have thought that its illegal to charge VAT at 20% and only pay 5% to the government.
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But firms AREN'T obliged to pass on the VAT cut to customers by dropping their prices. The Treasury says that while it looks to businesses to pass on the benefit of the VAT drop to their customers if they can, it is for individual companies to decide their own prices – and many affected firms will have missed out on recent income due to being closed during lockdown.
so basically the site will have recalculated it's prices upwards to give the same amount payable from you as before while still passing on 5% VAT to HM and kept the extra amount.
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We recently booked for a stay at Fakenham Racecourse, a site we’ve used many times before. They are not passing on the VAT savings, not giving the usual £1 / night reduction for Club members and are requiring full payment when booking.
We’ve only booked with them because there was nowhere else in the area with vacancies for the week in September that we wanted.
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Showing 20% yes, also paid late July.
They don't need to pass the saving on but in their email reply state they will be using the difference as their lost profit from the last few months
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