Complete the form below to ask us a question or make an enquiry. We’ll get back to you via phone or email as soon as possible.

Insights

Are park owners a business or domestic energy customer?

Posted on 12th October 2016 in Parks

Posted by

Kirsty McLennan

Associate and Solicitor
Are park owners a business or domestic energy customer?

We receive many queries from park owners about whether they are classed as business or domestic customers when selecting an energy contract.

 

Is energy use in a holiday park classes as business or domestic use?

When electricity is resold by park owners to holiday caravan or park home owners VAT can only be recovered at the reduced rate of 5%. This is because energy use in a caravan or park home, whether for residential or holiday purposes, is considered domestic use. However, park owners may find themselves paying VAT at the 20% rate and be unable to recover this cost from their customers.

A notice issued by HMRC clarifies that where 60% or more of the energy used is for domestic purposes the whole bill must be calculated at the reduced rate of 5 % VAT.

 

What if you are being charged at the wrong energy rate?

If you are concerned that you are being charged at the incorrect rate, you should contact your supplier.

 

Find out more

For further help or support please contact our specialist Parks team who will be happy to provide bespoke advice and guidance.

Contact our legal experts

Company & Industry

Related Insights

Insights

Pitch Fee Reviews - Unable to Reach an Agreement with your Park's Homeowners?

Posted on 18th April 2023 in Parks

With the current cost of living crisis and many people feeling the financial strain, some residential park operators have found it more difficult this year to reach agreement with the park homeowners on their annual pitch fee review.
Insights

Can the Mobile Homes Act 1983 apply to an agreement for the mooring of a houseboat?

Posted on 10th February 2023 in Parks, Planning and Licensing

In a recent decision, the Upper Tribunal (Lands Chamber) ruled that an agreement for the mooring of a houseboat was protected by the Mobile Homes Act 1983.

Posted by

Kelly Burns

Senior Associate & Solicitor