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Holiday Parks Accountants
Accountants for Caravan Parks & Campsites
Holiday park accountants who understand parks, lodges and caravan sites. We negotiate with HMRC, optimise VAT and capital allowances, keep cashflow steady. Tailored support reduces stress and keeps you compliant now.
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Caravan & Holiday Park Tax Specialists
Caravan & holiday park tax specialists help owners & operators plan, resolve HMRC enquiries fast. We manage VAT on site fees and utilities capital allowances on infrastructure, payroll/CIS, and sector accounts. If questions arise, we lead negotiations, prepare evidence packs, and use ADR to settle quickly. From seasonal cashflow to multipark groups, our tailored support keeps you compliant and confident with less hassle.
FHL Abolition: What Park Owners Need to Know
The abolition of FHL reshapes the tax for park owners of lodges or caravans. After the change, specific reliefs end, leading to tighter loss rules and limited finance cost relief. Capital gains planning will also change, so the timing of disposal and valuations is vital. Expect more scrutiny on interest relief, pension planning, and rental-status mortgages. Act early: review bookings, reprice, update records, and assess the impacts of VAT and rates.
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The values we live by
Honesty guides everything we do. We believe in transparent advice, accurate reporting, and doing what’s right for our clients every time.
We live and breathe tax. Our expert team delivers up-to-date, accurate advice so clients stay compliant, efficient, and ahead of the curve.
Every client matters. We take time to listen, understand your needs, and deliver personalised tax solutions with care and attention to detail.
OUR SERVICES
Our Practice Areas
We are a team of specialist tax advisors who are delivering expert guidance on tax compliance, international tax, HMRC investigations, business structuring, capital gains, inheritance tax, corporation tax and self assessment services.
We know personal taxes can be overwhelming. With us, your returns are accurate, on time, and tailored to your unique life.
We know running a business is hard enough. Let us handle your business taxes so you can focus on growth with confidence.
We know smart planning makes a difference. Our tax strategies help you stay compliant, save more, and plan for the future.
We know living abroad brings tax challenges. Whether in or out of the UK, we make your expat taxes smooth and stress-free
We know HMRC enquiries can be daunting. Count on us for expert support and peace of mind during your tax investigation.
We know unfair tax bills cause stress. If you disagree with HMRC, we’ll guide your tax appeal with precision and confidence.
We are leading network of qualified accountants, tax advisors and specialist business consultants in United Kingdom
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We are here to help you with any questions you may have
Why do holiday parks need specialist accountants?
Running a holiday park isn’t just about welcoming guests — it’s about managing complex tax and accounting rules that most general accountants don’t fully understand. A holiday park faces unique challenges that differ from those of a regular retail or service business. These include paying VAT on caravan sales and pitch fees, managing seasonal staff with PAYE and CIS, dealing with fluctuating cash flow between busy and quiet months, and handling ongoing projects such as site expansions or utility upgrades.
For example, VAT rules for holiday accommodation are covered in HMRC’s VAT Notice 709/3, while caravan pitch fees and utilities often fall under VAT Notice 701/20. A small mistake here — like misclassifying a pitch fee — could mean overpaying VAT for years or facing penalties in an HMRC inspection. At the same time, many parks rely on seasonal staff or subcontractors for maintenance, which brings in payroll and CIS compliance requirements. Add to that the abolition of Furnished Holiday Lettings (FHL) relief from April 2025, and you have a rapidly changing tax landscape that requires proactive planning.
How does VAT apply to holiday parks and caravan sites?
VAT can be one of the trickiest areas for holiday park owners. HMRC applies different rules depending on whether you’re selling short-term accommodation, charging pitch fees, or providing utilities. According to VAT Notice 709/3, holiday accommodation is typically standard-rated at a rate of 20%. This includes caravan rentals, lodges, chalets, or even glamping pods.
But it doesn’t stop there. If a guest stays for more than 28 consecutive days, the “reduced value rule” applies. This means you charge VAT at the standard rate for the first 28 days, and a reduced rate for the remaining days. This is especially important for guests staying in the area for an extended period.
There’s also VAT Notice 701/20, which pertains to caravans and pitch fees. If a caravan is someone’s main home, their pitch fee may be exempt from VAT. However, if it’s a holiday rental, it usually has a standard rate of VAT.
Utility charges, site maintenance fees, and even items such as laundry tokens can also incur VAT obligations, depending on how they’re billed. Missing these details can lead to costly errors.
What does the end of Furnished Holiday Letting (FHL) relief mean for park owners?
From April 2025, the government will abolish the Furnished Holiday Lettings (FHL) rules. This change affects many holiday park and caravan site owners who rent out units that previously qualified for FHL tax benefits.
Until now, FHLs have enjoyed several perks, including full mortgage interest relief against rental income, business asset disposal relief (which reduces capital gains tax on sale), rollover relief, and enhanced pension contributions. These advantages made letting out furnished lodges or static caravans more attractive than standard residential lets.
With abolition, income from holiday lets will be treated in the same manner as income from regular property. This means that interest relief will be restricted, capital gains tax reliefs will be lost, and different rules will apply for loss relief. For many park owners, this could mean higher tax bills and less flexibility when it comes to selling or reinvesting in the property.
So what should you do? First, assess whether your accommodation is primarily a holiday let or a long-term rental. If you’re relying on FHL relief, you’ll need to rethink your tax planning before April 2025. You may want to explore restructuring ownership, using a limited company, or taking advantage of capital allowances where possible.
How will Making Tax Digital (MTD ITSA) affect holiday park owners?
Making Tax Digital (MTD) for Income Tax Self-Assessment (ITSA) is one of the most significant changes HMRC is introducing for business owners, landlords, and self-employed individuals. From April 2026, anyone with a qualifying income above £50,000 must comply. The threshold will then drop to £30,000 from April 2027.
For holiday park owners, this means if your income comes from caravan rentals, campsite fees, or furnished lodges, you may fall under MTD ITSA rules. Instead of filing one annual return, you’ll be required to submit quarterly digital updates to HMRC, plus an end-of-period statement.
The key challenge? Record-keeping. Spreadsheets and paper systems won’t cut it anymore. HMRC requires digital records and software with “digital links.” This means that your invoices, VAT records, and expense tracking must all be integrated into approved software, such as Xero, QuickBooks, or Sage.
For park owners with seasonal income, this may feel overwhelming. Submitting four times a year during peak seasons isn’t easy if you don’t have proper systems in place. Missing deadlines can trigger penalties, which is why preparation now is vital.
What do holiday park owners need to know about business rates and VOA valuations?
Business rates are often one of the largest overheads for holiday parks. Unlike residential landlords, park owners pay rates based on valuations made by the Valuation Office Agency (VOA). These valuations take into account your park’s facilities, pitch numbers, location, and income.
The problem is that many assessments are outdated or simply unfair. For example, two caravan sites in the same area might have wildly different rateable values, despite having similar sizes and occupancies. If you’re over-valued, you could be paying thousands more each year than necessary.
The VOA expects detailed evidence if you want to challenge your valuation. This can include occupancy data, pitch fee schedules, utility charges, and even your park’s financial accounts. Many owners don’t have the time or expertise to prepare this level of documentation.
Business rates also interact with tax planning. If you’re investing in site improvements, new utilities, or amenities, there may be capital allowances that reduce your corporation tax liability, offsetting part of the rates burden. The takeaway? Don’t just accept your VOA bill. By regularly reviewing your business rates and seeking expert advice, you can often significantly reduce costs — freeing up funds to reinvest in your park.
How is corporation tax calculated for holiday parks?
If your holiday park is run through a limited company, you’ll be subject to UK corporation tax, which is currently set at 25% for profits over £250,000. For small parks with profits under £50,000, a 19% “small profits rate” applies. Anything in between is tapered.
Corporation tax covers all your business profits — pitch fees, caravan rentals, shop sales, and even commissions from booking services. But unlike personal tax, you can claim a wider range of allowances to reduce your liability. This includes capital allowances for building works, utilities, road improvements, or static caravan installations. You may also qualify for the Structures & Buildings Allowance (SBA) on new facilities such as shower blocks or reception areas.
The challenge for park owners is distinguishing between revenue and capital expenditures. HMRC expects a clear justification. For example, resurfacing roads is a capital expenditure, while minor repairs may be a revenue-generating activity. Get this wrong, and you risk either overpaying or facing an enquiry.
How do payroll and CIS rules affect holiday park owners?
Holiday parks often rely on a mix of permanent staff and seasonal workers. You might employ receptionists, cleaners, groundskeepers, and lifeguards, while also subcontracting trades like electricians, builders, or landscapers. This blend of staff makes payroll and Construction Industry Scheme (CIS) compliance especially important.
Under PAYE, you must deduct tax and National Insurance from employee wages. Seasonal contracts can complicate matters, as staff join and leave frequently. It’s easy to make mistakes with holiday pay, pension auto-enrolment, or Real Time Information (RTI) submissions to HMRC.
CIS applies when you hire subcontractors for construction work — such as building a shower block, installing roads, or upgrading utilities. You may need to deduct tax at source from their payments and file monthly CIS returns. Failing to complete this step can result in penalties.
Many park owners underestimate how HMRC scrutinises payroll and CIS. For example, misclassifying a worker as self-employed when they should be on payroll can trigger fines and backdated liabilities.
Can holiday park owners claim capital allowances on site improvements?
Yes — and this is one of the most overlooked opportunities in holiday park accounting. Capital allowances enable you to offset the cost of certain long-term investments against your taxable profits, thereby reducing your corporation tax.
For example, if you install new shower blocks, upgrade electrical systems, resurface roads, or add water treatment facilities, these may qualify as plant and machinery. You could claim the Annual Investment Allowance (AIA), which provides 100% tax relief up to £1 million of qualifying expenditure.
There’s also the Structures & Buildings Allowance (SBA), which allows relief to be spread over 33 years for structural improvements, such as reception areas or clubhouses. While slower, it still reduces taxable profits over time.
Static caravans and lodges may also qualify in some circumstances, particularly if they’re moveable or contain significant fittings. The key is correctly identifying what’s capital, what’s revenue, and ensuring claims are well-documented. Many park owners miss out simply because their general accountant lacks an understanding of the details. HMRC requires clear categorisation and evidence — invoices, contracts, and site plans. Without proper claims, you could be overpaying corporation tax year after year.
What is the 28-day rule for VAT on long-stay holiday accommodation?
The 28-day rule is a key VAT consideration for holiday parks, especially those offering extended stays. According to HMRC VAT Notice 709/3, holiday accommodation is typically subject to a 20% VAT rate. However, when a guest stays for more than 28 consecutive days, a reduced value rule applies.
Here’s how it works: VAT is charged at the standard rate for the first 28 days. After that, you only charge VAT on the value of any services provided — like cleaning, linen changes, or utilities. Essentially, the accommodation element after 28 days is exempt from VAT.
For caravan and holiday park owners, this rule is particularly important when hosting seasonal workers, long-term guests, or customers who book extended stays. If you continue to charge VAT on the full fee after 28 days, you may be overpaying HMRC. On the other hand, if you don’t apply VAT correctly, you risk underpayment and penalties.
It’s also important to distinguish between different types of stays. For example, a pitch fee for a caravan that’s someone’s permanent home may already be exempt under VAT Notice 701/20. But if it’s a holiday let, the 28-day rule determines how VAT is applied.
How can specialist accountants help with utilities and pitch fee VAT?
Holiday parks often bill residents and guests not only for accommodation, but also for utilities such as electricity, water, and gas, as well as pitch fees and site services. HMRC applies very specific rules to these charges.
For example, under VAT Notice 701/20, pitch fees can sometimes be exempt from VAT if the caravan is the customer’s permanent residence. But if it’s a holiday let, the same pitch fee is standard-rated at 20%. Similarly, utilities may be charged at the reduced 5% VAT rate in some cases, but at 20% in others, depending on how they’re metered and billed.
The challenge is that most park owners use a mix of residential and holiday customers. Without clear invoicing systems, you risk applying the wrong VAT rate — either overpaying HMRC or facing penalties for underpayment.
Do holiday parks need audits or special compliance checks?
Not all holiday parks require a statutory audit, but those with a turnover above the audit threshold (currently £10.2 million) or those structured as certain types of companies may be required to undergo one. Even if your park doesn’t legally need an audit, many lenders, investors, or buyers expect assurance reports before financing or acquisition.
Beyond statutory audits, holiday parks also face HMRC compliance checks. This could cover VAT, payroll, CIS, or corporation tax. For example, HMRC may request detailed evidence of your VAT treatment on pitch fees or scrutinise staff contracts to ensure payroll accuracy.
How can a Tax Accountant help holiday parks grow and stay compliant?
Running a holiday park is demanding — you’re balancing guest services, site maintenance, staff, and finances. Tax can feel like a constant burden on top of this. That’s where we step in.
At Tax Accountant, we offer a comprehensive suite of accounting services specifically designed for holiday parks. This includes:
- VAT compliance (709/3, 701/20, 28-day rules)
- Planning for FHL abolition in April 2025
- Setting up digital records for MTD ITSA
- Business rates reviews and VOA appeals
- Corporation tax returns and capital allowances claims
- Payroll and CIS management for seasonal and subcontract staff
- Utilities and pitch fee VAT treatment
- Audit preparation and compliance health checks
What sets us apart is our industry focus. We understand the seasonal nature of park income, the difference between static and touring caravans, and the detail HMRC expects. We don’t just file returns — we give practical, commercial advice that protects your profits and supports growth.
Our clients see real results: lower business rates, smoother VAT inspections, reduced corporation tax bills, and peace of mind when HMRC rules change.
If you own or manage a holiday park, now is the time to prepare — for MTD in 2026, for the end of FHL relief, and for competitive pressures in the leisure sector. With the right accountants on your side, you can focus on guests while we take care of compliance.