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5% tax on tourism extended


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Nice to see a bit of good news in the budget.  The 5% reduced rate of VAT for tourism and hospitality will be extended for 6 months till September. As in every budget there are swings and roundabouts, but it is nice to see something coming our way  :)

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A strange decision in a way given that everyone seems to be suggesting that we will have a staycation boom this year? Perhaps it's not quite so simple to separate out different parts of the leisure industry? Clearly the pub/restaurant trade has suffered massively from the various lockdowns. All we need confirmed now is that the two clubs and independent campsites are passing the benefit on to their customers?

 

David

David - Milton Keynes

Bailey Alliance 66-2 Motorhome for holidays and a Kia Venga for home.

 

Caravan Travels

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well, it seems that listening to the budget it may be the only thing that we may benefit from.  Of course, as you say they don't have to pass it on and they may decide not to.  I was just going by what happened  last time.   I do agree that we didn't expect anything and there are the back door tax rises.  This year they need people to get out and start spending again and if there is an incentive to do it then that can't be a bad thing. 

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20 hours ago, klyne said:

A strange decision in a way given that everyone seems to be suggesting that we will have a staycation boom this year? Perhaps it's not quite so simple to separate out different parts of the leisure industry? Clearly the pub/restaurant trade has suffered massively from the various lockdowns. All we need confirmed now is that the two clubs and independent campsites are passing the benefit on to their customers?

 

David

 

The two clubs certainly passed on the savings prior to the current lockdown so no reason to assume they won’t continue to do do.

Private sites are a different matter though. We have booked on one close by to try out the new van due on 20 April, and they are charging their previous rates which include vat at the standard 20% level.

Pity the reduced vat on hospitality doesn’t extend to the purchase of a new van! I recall about 10 years ago benefiting on a vat reduction introduced for a period to stimulate the economy. 

 

Edited by hp100425ev
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on the CMC website it says that the VAT will be 5% until September 30th and then 12.5% from  1st October until  31st. March 2022

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On 03/03/2021 at 13:57, joanie said:

..................., but it is nice to see something coming our way  :)

Site owners way.

Last years site did not reduce my bill, so I thought it was done to help the provider.

Regards, David
Ford Kuga ST line 2ltr. Diesel 2017,  Bailey Pursuit 11 400/2 2018, Emove em303 motor mover, Hyundai 1000i Generator.

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49 minutes ago, David 38 said:

Site owners way.

Last years site did not reduce my bill, so I thought it was done to help the provider.

The choice was with the site owner really in most cases. If the price was advertised as a flat site fee the owner could have chosen to pay less VAT and keep additional profit or to reduce his advertised price on arrival.

Alan

 

2005 Nissan X-trail 4WD diesel and Swift Charisma 540 2012 Lunar Clubman ES  2018 Lunar Clubman ES

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1 hour ago, David 38 said:

Site owners way.

Last years site did not reduce my bill, so I thought it was done to help the provider.

the tax cut is for the hospitality and tourism sector, but it doesn't cover alcohol. It is to help the businesses over the covid shutdowns and to help them to recover. Whether or not they pass on this tax cut to their customers or use it for some other reason is their choice.  My post was related to the CMC, so was the site that you refer to a CMC site as well?

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2 minutes ago, joanie said:

the tax cut is for the hospitality and tourism sector, but it doesn't cover alcohol. It is to help the businesses over the covid shutdowns and to help them to recover. Whether or not they pass on this tax cut to their customers or use it for some other reason is their choice.  My post was related to the CMC, so was the site that you refer to a CMC site as well?

Yes I thought the Subject here was the tourism sites, seen to mention of CMC or alcohol.  My site was a commercial site which also had a CL and a rally field. CL was full so I was on rally field which had no rally, rallies not allowed due to the restrictions, so site owner booking normal campers and caravaners on to it.

Regards, David
Ford Kuga ST line 2ltr. Diesel 2017,  Bailey Pursuit 11 400/2 2018, Emove em303 motor mover, Hyundai 1000i Generator.

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