Club’s VAT figures don’t add up
The Club claims that it has reduced it’s VAT rate to 5%, giving members a 12.5% reduction. ‘Only pay 5% VAT. 12.5% reduction on all published prices.’
In fact, VAT on camping sites was 20%, and the Chancellor reduced it to 5%, giving a 15% reduction.
So, in fact the Club have not passed on the full amount, meaning members are paying 7.5% - 5% VAT, and 2.5% increase in prices to the Club.
When I emailed the Club they did not reply.
Comments
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This has been discussed before but a 15% reduction in the VAT part of your pitch price means a 12.5 % reduction overall.
A pitch cost £120, that is £100 for the pitch that the club gets, and £20 goes to HM. Now with the reduction you only pay £105 as 5% of £100 is £5. You have saved £15 so the percentage change is 15/120 x 100 = 12.5%. It works for any amount (algebraic proof available
)The club is correct.
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I attempted to explain that in two reviews the OP wrote. Obviously I failed.😕
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you did indeed, sorry if I had known I wouldn't have tried to explain again.
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No worries at all. The more the merrier. Unlike you, I’m a lay person where maths is concerned.
In fact I see I said it in response to two of the OP's reviews 🤷🏻♂️
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The caravan club clearly forgot the get-out '*' when they said they were passing on their VAT deduction. They are refusing to reduced VAT on this year's seasonal pitches which start and end during the chancellor's VAT reduction period.
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Perhaps they think that the current situation is likely to mean folk using them for more of the available days. I know when we had one it worked on at about £6 a night if we used all that was allowed. Of course the more days you are there the more electric you use. At the rates they charge for seasonal, I wouldn't begrudge then hanging on to it.
Also, when we had one a few years ago for September / December we paid for it at the beginning of the year. So possibly the VAT has already been paid.
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