Park Homes: VAT on energy

baldeagle49

Recently on MSE, I saw that VAT on Park Homes energy should be 5% and not the 20% we currently pay. I raised this issue with our Park Homes landlord, but have not had a reply.

Any ideas who I can contact in HMRC VAT division to move the conversation forward??

Thanks

sammyjammy

The landlord will be paying 20% VAT on it due to it being a business connection, if he passes that on to you there isn't anything that you can do.

Grumpy_chap

https://forums.moneysavingexpert.com/discussion/6679652/park-homes-vat-on-energy

That might not be correct in all cases.

The site often pays commercial rates for electricity, so subject to full VAT. That can be passed on in full.

sherlock228

if you are not on an individual contract & meter to your own park home then your LL is permitted to recharge you at whatever they have paid themselves but on a non profit basis, So as most sites will be on commercial energy supply rates they will be paying 20% Vat and thus recharge you with 20% Vat included

Written questions and answers - Written questions, answers and statements - UK Parliament

Woodstok2000

https://forums.moneysavingexpert.com/discussion/comment/82101461#Comment_82101461

This is exactly right. Per the linked parliamentary question, your landlord must provide you with a breakdown of their costs on demand, so you can check that theyre only passing on what they are entitled to charge you for, but if they are paying 20% vat, they are allowed to pass on that cost.

eskbanker

https://forums.moneysavingexpert.com/discussion/6679652/park-homes-vat-on-energy

Whereabouts specifically did you read this?

silvercar

There was an update to the law in early 2025. Supplies to residential properties should now be charging VAT at 5%.

https://www.gov.uk/guidance/vat-on-fuel-and-power-notice-70119

It is for the re-seller to notify their supplier that VAT should be charged at the residential rate. They then can only pass that charge on to you.

UKTaxHelper

On the HMRC question, there isn't really a door to knock on there. You're not the one accounting for the VAT, so they won't take it up with your site owner on your behalf, that sits between the site owner and their own energy supplier. What does give you leverage is that a reseller of energy can't charge you more than it cost them, so if their own supply does get corrected to 5% they have to pass that reduction on rather than pocket the difference. So the more useful move is putting it to them in writing with that notice attached and asking for the cost breakdown, rather than chasing HMRC.

sherlock228

https://forums.moneysavingexpert.com/discussion/comment/82102300#Comment_82102300

all very true, but there is no incentive (or leverage) for the site owner to change tariff with their energy company since they recharge at cost whether it's 20% or 5%.
An appeal to goodwill is about all that can be asked

silvercar

https://forums.moneysavingexpert.com/discussion/comment/82102611#Comment_82102611

they don’t need to change tariff, they need to inform the provider that VaT should be charged at 5% not 20%.

MattMattMattUK

I believe there is a complication when any of the electricity is used for business purposes and not just recharged to residential users, for static caravans some will be used for site lighting, potentially clubhouse, shops, shared facilities etc. so it might be a bit more complicated, not that it is impossible, but that the business may need them to differentiate between the supply for the business element and the supply for the residential element.

They likely view it as more hassle than it is worth, it does not negatively impact them, so they just keep rebilling what they get charged.