A lay view of HMRC

Key points

• The licensed owners of static holiday caravans in the UK are liable for VAT business rates. This is costing them £80-£150 each per year.
• The park owners pay the combined annual assessed amount of rates to the local authority without VAT because business rates are exempt. They then recoup this by collecting apportioned amounts of rates from each individual caravan owner.
• The universal application of HMRC VAT Notice 701/20 has an invidious result.
• Caravan park owners will not pay VAT whatever happens: they will either be exempt (paying no VAT to the council) or they pay VAT to the council and set it off against their VAT.
• The individual caravan owners will almost universally not be VAT-registered in relation to their caravan and so unable to reclaim any VAT paid.

I am a retired solicitor well used to the concept of judicial review...