Campsite taxes and VAT in the UK

Do campsites charge VAT in the UK?

In the UK, most goods and services, including the provision of camping and caravan pitches, are subject to Value Added Tax (VAT). That means if your Hipcamp is operated as a business which is VAT registered, you should be charging and accounting for VAT. Pitches, camping, glamping accommodation, and most self-catering accommodation all fall into this category, which is covered by the Government’s VAT notice 709/3. 

Any camping business (or any business providing goods and services) that has an annual turnover of more than £85,000 must be registered for VAT. You can also be voluntarily VAT registered if your business does not meet that threshold. Either way, if you are VAT registered, you should be charging VAT on your sales of pitches, accommodation, and any VAT-able goods on sale at your Hipcamp. This is typically charged at the standard rate set by the Government.

If your turnover is less than £85,000, you do not need to charge and account for VAT (unless you have voluntarily VAT registered).

Do campsites pay business rates?

Business rates or non-domestic rates, as they are better known in Scotland, are charged to most non-domestic properties. This includes camping, glamping, and caravan sites; although many smaller Hipcamps will qualify for small business rate relief. Rate relief can mean a discount on the rate you pay—or that you will owe nothing at all—more on this below.

Business rates, like council tax, are collected by the local council in your area via an annual bill, which is sent out in February or March. In England and Wales, business rates are calculated using a non-domestic property’s rateable value. You can find out your property’s rateable value by checking on the Government register. If it does not already appear on the register, or you disagree with the rateable value, you will need to apply to the Valuation Office Agency to get the rateable value worked out. This figure is not the amount you pay but is used along with a multiplier (set by the Government) to calculate business rates. You can estimate rates for properties in England and Wales using a tool on the UK Government website. Similar calculators are provided for businesses in Scotland and Northern Ireland, where rates are calculated in a slightly different way.

Small business rate relief

If your business has a rateable value of less than £15,000, and your business only uses one property, you qualify for small business rate relief. If the rateable value is less than £12,000, you will pay nothing at all. If the rateable value is between £12,000 and £15,000, a percentage discount is applied.

Once you know your rateable value, to benefit from small business rate relief you must contact your local council.

This article was created by the Hipcamp team based on our years of experience, research, and local understanding. However, please note that this is still only our interpretation of UK regulations and does not constitute legal advice. Hipcamp does not accept responsibility for errors and omissions. Different conditions may apply depending on your individual circumstances and we recommend seeking professional advice on implementing the rules.

This article was first published on 18th March 2023.