Head of Travel & Leisure

HMRC U-turn on new VAT rule

Government revises guidance relating to TOMS Keen readers of our blogs will recall my post at the beginning of this year, highlighting that travel organisers using the Tour Operators’ Margin Scheme (TOMS) would have to pay VAT on forfeited customer deposits and other cancellation fees, from March 1, 2019. Thankfully, HMRC has concluded that this…

Head of Travel & Leisure

HMRC Publishes Guidance on TOMS

Last month HMRC issued Revenue and Customs Brief 13 (2018) outlining changes to the VAT treatment of retained payments and deposits. For travel organisers using the Tour Operators Margin Scheme (“TOMS”) this will mean that from 1 March 2019 cancellation income cannot be isolated from the TOMS calculation as currently. HMRC Brief 13 2018 Of…

A no-deal Brexit could torpedo a key benefit of the EU Package Travel Directive, warns Chris Photi

UK Package Travel Regulations (PTRs) which came into force in July brought mutual recognition of consumer financial-protection regimes across the EU, in line with Europe’s Package Travel Directive. It meant UK-based travel businesses could sell EU-wide under UK protection rules and businesses based elsewhere in the EU could sell into the UK under the rules…