Domestic holiday camp operator Pontin’s is finalising a six-figure sum reduction in VAT payments for 12,000 holidaymakers before Christmas.

The move follows a reduction in the rate of VAT from 17.5% to 15% in the pre-Budget report last month.

The company is ensuring documents and cheques are sent out to customers confirming the lower rate of VAT before Christmas. The operator will also be covering all the costs of processing the refunds, stationery, postage and packing.

Most customers are due to receive their new documents today.

Chief executive Ian Smith said: “We want our customers to enjoy the VAT cut now, not to have to apply for it and wait for it – we want them to have it now to enjoy it now.”