holiday parks

Energy, water and waste for holiday park operators

HMRC treats caravans and self-catering holiday accommodation as residential accommodation, so energy used in them can qualify for 5% VAT and no Climate Change Levy; where qualifying use is 60% or more of a supply, the whole supply qualifies (HMRC VAT Notice 701/19).

  • Caravan and lodge VAT relief checked
  • Capacity set for the summer, checked all year
  • Every park in a group on one register

What we check

  • VAT and Climate Change Levy

    Energy used in caravans, lodges and self-catering lets can qualify for 5% VAT and no levy. We check how each meter on the park is charged.

  • Capacity charges

    The main supply is sized for the summer peak but paid for all year. We check it against real demand.

  • Recharges to owners

    If you recharge owners or guests for electricity, Ofgem's maximum resale price rules limit how much you can charge, so check your recharges against what your contract costs.

  • Pools and clubhouses

    Pools, clubhouses, shops and laundries, each on the right contract.

  • Water

    Pools, showers and laundries make water a large cost. In England and Scotland the park can choose its water retailer.

  • Seasonal waste

    Collections set with more in summer and fewer in winter, not sized for the busiest week all year.

A group of parks?

We put every park's supplies on one register, line up the end dates and buy the portfolio together, with the VAT position checked on each park.

How we are paid

At Business Savings Guru, we believe customers should understand how their energy broker is paid. Our commission is clearly disclosed on the energy contract you sign, so you know how BSG is remunerated before you commit. How broker fees work

Questions we are asked

Do caravans on a park qualify for 5% VAT on electricity?
Energy used in caravans and self-catering holiday accommodation is a qualifying use for the reduced rate. If 60% or more of a supply is qualifying use, the whole supply can be reduced-rated. We check each supply on the park.
Is a flexible contract a good idea for a seasonal business?
It can be for a large park group, but many operators prefer a fixed price. Our guide to fixed or flexible contracts explains the trade-off.