In response to the increasing challenge of Coronavirus and in light of rapidly evolving advice, Tozers has taken steps to ensure that we continue to provide you with our usual client service whilst also maintaining the safety of our clients and colleagues. Please see our full update here.

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

What rate of VAT is payable?

Posted on 12th October 2016 in Parks

Posted by

Kirsty McLennan

Associate and Solicitor
What rate of VAT is payable?

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

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.

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

If you have any queries regarding the topic of this blog or if you are interested in subscribing to our Parklaw service, contact the Parks Team by telephone on 01392 207020 or email parks@tozers.co.uk

Company & Industry

Related Insights

Insights

What can charities do to re-purpose restricted funds to release additional funding?

Posted on 27th March 2020 in Charities and Social Enterprise

Many charities are in desperate need of alternative sources of funding to maintain vital services to beneficiaries whilst the coronavirus crisis continues.

Posted by

James Evans

Partner and Solicitor
Insights

Support in the property market during Coronavirus

Posted on 27th March 2020 in Residential Property

Moving house can be stressful at the best of times, but the current unsettled situation surrounding Coronavirus brings with it a set of new challenges and uncertainty.

Posted by

Vernon Clarke

Partner and Solicitor