Vat drop on holidays but not for boat hire

[Tonka]

Why is boat hire for this year holiday's not part of the holiday VAT reduction to 5% 

[kawaton]

It is.  Paid my balance today and they reduced VAT to 5 %

[Rob-M]

According to a statement on ABC boat hire boating holidays are excluded from the vat reduction on holiday accommodation.

[Jerra]

5 minutes ago, Rob-M said:

According to a statement on ABC boat hire boating holidays are excluded from the vat reduction on holiday accommodation.

Interesting!   The govts website defines holiday accommodation as:

 

Holiday accommodation includes, but is not restricted to, any house, flat, chalet, villa, beach hut, tent, caravan or houseboat.

 

As many uninitiated people refer to narrowboats as houseboats because of the accommodation I wonder what the government really meant.

 

EDIT.

 

Perhaps I should have added this:

 

Accommodation advertised or held out as suitable for holiday or leisure use is always treated as holiday accommodation.

Edited July 14, 2020 by Jerra

[Alan de Enfield]

26 minutes ago, Rob-M said:

According to a statement on ABC boat hire boating holidays are excluded from the vat reduction on holiday accommodation.

Companies have the option of passing the saving onto their customers, or witholding it - I'm sure that people will remember which companies went down which route.

[Rob-M]

12 minutes ago, Alan de Enfield said:

Companies have the option of passing the saving onto their customers, or witholding it - I'm sure that people will remember which companies went down which route.

It isn't a case of not passing a saving on, this is the statement from British Marine...

 

British Marine receive clarity on the reduction in VAT for holiday accommodation

On the 8 July 2020, the Chancellor of the Exchequer provided an update on the measures HM Treasury would take to support businesses following the COVID-19 pandemic.  

Included in his announcement was a VAT cut to 5% for the tourism and hospitality sectors for a 6 month period (15 July 2020 to 12 January 2021).

In a communication on 14 July, HMRC confirmed to British Marine that the reduction of VAT to 5% for holiday accommodation does not apply to those businesses hiring recreational craft with overnight accommodation, nor does it apply to mooring providers for any vessels.  The reduction in VAT to 5% would only apply to those providing holiday accommodation on houseboats.

Edited July 14, 2020 by Rob-M

[Jen-in-Wellies]

12 hours ago, Tonka said:

Why is boat hire for this year holiday's not part of the holiday VAT reduction to 5% 

No Tory party doners, or cabinet ministers hold shares in boat hire companies, or go on canal holidays?

Edited July 15, 2020 by Jen-in-Wellies

[Cheese]

11 hours ago, Alan de Enfield said:

Companies have the option of passing the saving onto their customers, or witholding it - I'm sure that people will remember which companies went down which route.

I think it may  depend on what a company has quoted, and a hirer accepted.

 

If the agreed price is for "£x +VAT" then there isn't really much option but to now apply 5% for the relevant period.

But if the price is "£y including VAT" (as is typically the case for prices quoted in shops, restaurants, hairdressers etc), and that has been agreed, then the company can perhaps keep the savings if it wants to.

[Alan de Enfield]

1 minute ago, Cheese said:

I think it may  depend on what a company has quoted, and a hirer accepted.

 

If the agreed price is for "£x +VAT" then there isn't really much option but to now apply 5% for the relevant period.

But if the price is "£y including VAT" (as is typically the case for prices quoted in shops, restaurants, hairdressers etc), and that has been agreed, then the company can perhaps keep the savings if it wants to.

In the UK it is law that for 'domestic consumers' the prices quoted must be inclusive of VAT, for 'industrial / commercial' customers who can reclaim the VAT then the prices are normally exclusive of VAT.

Rule 3.18 of the CAP Code states that "quoted prices must include non-optional taxes, duties, fees and charges that apply to all or most buyers. However, VAT-exclusive prices may be given if all those to whom the price claim is clearly addressed pay no VAT or can recover VAT.

 

VAT Guidance :

 

Consumers usually have to pay VAT and can’t generally recover it. If customers are consumers, all prices quoted in ads should include VAT in the stated price. It is not sufficient to state a VAT-exclusive price accompanied by information that VAT is payable. When VAT is included in the quoted price, it is optional to include a statement to that effect.

The ASA has ruled against many ads which present VAT-exclusive prices to customers who have to pay VAT. In July 2012, 18 complainants objected that ads for personalised calendars and diaries were misleading because prices did not include VAT (and other compulsory costs, such as postage) (VistaPrint Ltd, 4 July 2012).

[Cheese]

Thanks, I had never realised that!  

 

In which case it probably depends on the T&Cs between hirer and company.  Having looked at a few for well known companies, they say that prices are subject to any change in VAT rate prior to settlement / final payment.    So someone who has paid just a depost will benefit from the reduction, but anyone who has paid in full won't.

[BlueStringPudding]

Black Prince aren't happy.

[Damesb]

We’ve booked a holiday with Hoseasons who’s FAQ implied that the lower VAT rate of 5% applies to services provided by the boat owner.

 

 

Also, HMRC confirms this for for overnight boat accommodation. https://www.gov.uk/guidance/hotels-holiday-accommodation-and-vat-notice-7093