The Great British VAT Con

So you are one of the ‘Unfortunates’ locked in to the terms of a site licence agreement issued as a standard consumer contract by trade members of the NCC and BH&HPA trade associations.

The business ‘Untouchables’ have lead you to believe that any VAT reduction has been introduced by the Government to help them through the covid crisis, and that the 15% reduction should go directly towards lining their pockets rather than supporting the individual consumer.

Your invoices have now started to appear in a different formats, obscuring increases in your base fees to accommodate the business in creaming off the 15% reduction in VAT. Perhaps the VAT element has been removed altogether along with your consumer rights and protections, never to be seen again?

So you dig out your agreement and go through it with your Vidal Sassoon fine-toothed comb (fake) and start gliding it through the silky, well conditioned words of the agreement until it gets snagged on something. Oooops what could that be?

Section Pitch Fee Increases

We will review your pitch fee having regard to the following criteria

Any changes which are not within our control such as rates, water charges and other charges paid to third parties, including those caused by a change in the law or rates of taxation.

Changes in our operating costs including those brought about by changes in the law or regulatory change and by taxation

Oh sweet Jesus! Are you telling me this is on the majority of licence agreements issued by the NCC and BH&HPA

It’s there in black and white…..let me check…..yes they’ve signed it too!

It is quite transparent, even I can read it as an ‘unfortunate’, it does not say fees will always go up, in fact it says the fees will have regard to changes in taxation and they have just come down. Now that is exactly what I thought it to mean when I signed.

Dear Mr “Untouchable” you owe me sum dosh, as you can see you have put your grubby little signature (X) on the dotted line, just here. What? Its not meant for individuals?

I kindly refer you to the VAT notice endorsed by the The Rt. Hon. Jesse Norman MP, Financial Secretary to the Treasury,

Impact On Individuals

This measure is expected to have a positive impact on individuals who go out for meals, buy hot takeaway food, stay in hotels or other holiday accommodation or visit the types of attractions outlined above. This measure temporarily reduces VAT charged on these supplies from 20% to 5%. Customer experience is expected to improve accordingly. It will also support tourism in these sectors.

https://www.gov.uk/guidance/hotels-holiday-accommodation-and-vat-notice-7093

Check your agreements they are very specific in this regard.

Now consider the letters, emails, invoices that you have received from your Parks.

Now what was it that started the fall of Capone? Untouchable my arse!