CHANGES TO TAX NOTIFICATION We write to let you know about changes to the taxation of holiday home owners that the government is introducing from 1 January 2012. As a result, you will notice changes to the way we have to charge VAT on some items from next year. This follows an announcement from HM Revenue & Customs (HMRC) requiring us to apply VAT to some recharges. HMRC’s announcement of these changes is published online on HMRC’s website: http://www.hmrc.gov.uk/menus/extra-stat-con-tn.pdf Business Rates Page 9 of HMRC’s Technical Note explains that from 1 January 2012, we have to apply VAT at the standard rate (currently 20%) when we invoice you for the business rates for your caravan holiday home. Water and sewerage Page 10 of HMRC’s Technical Note explains that from 1 January 2012, we have to apply VAT at the standard rate (currently 20%) when we charge you for water and sewerage. We’re members of our industry’s trade association, BH&HPA who argued long and hard against the imposition of this increased taxation. However, government was adamant the increased VAT charges should apply.
Yours Sincerely
J & B Rawcliffe
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