How does the change in VAT legislation affect Caravan Owners?

As a result of the recent changes in VAT legislation announced by the Chancellor last week, our focus will be to pass this reduction on to our for our Caravan Owners. Here are some questions you may wish to ask us in relation to this matter along with the answers. If you have any further questions please do not hesitate to call us on 0844 8000 828 or email info@valeholidayparks.com

Q: Will I get a refund of my 2009 site fees?

A: Yes. We will be crediting each Owners site fee account with the value of the difference caused by the reduction in the rate of VAT. It is not a straight forward 2.5% as some people might expect but works out at 2.12% (that’s a £2.50 refund for every £117.50 paid). For example, an Owner paying £2,000 site fees will get a credit of £42.40.

Q: What about Gas and Electricity?

A: This is taxed at 5% has not been affected by these changes.

Q: What about repairs to my caravan or draindowns etc?

A: The price charged includes Vat. If the work was done prior to 30th November, tax due will be at 17.5%. If the work is done after 1st December tax will be due at 15%.

Q: Does it affect my sublet income for 2008?

A: As the tax changes are effective from 1st December, there will be no impact on sublet earnings for last season.