How to Find TOMS Accountants Near You

How to Find TOMS Accountants Near You

How to Find TOMS Accountants Near You

The guidance around the (TOMS) Tour Operators Margin Scheme (VAT Notice 709/5) improved, including Paragraph 6.1, which details how to work out the selling price under the Tour Operators Margin Scheme.

 

TOMS states that the selling price includes:

 

  • Total VAT-inclusive selling price of all your margin scheme supplies. Even payments via credit card are part of your total selling price.
  • The totals VAT-inclusive selling price of any in-house supplies which you have supplied together with margin scheme supplies.
  • Receiving amounts relating to any supplies, package with margin scheme supplies which you arrange as an agent. That’s when you don’t recognize your commissions.
  • Receive forfeited deposits and cancellation fees from customers. They cancel bookings where these exceed 20% of the agreed price. When totaled, you can use method 2 to calculate your tax points.
  • The full amount paid by, or on account of, the customer (even if the agent deducts a commission and you receive only the balance). If the agent grants a discount to the customer, your selling price is the amount paid by the customer plus the ‘top-up’ amount added by the agent.

 

TOMS selling price should not include:

 

  • Any refunds made to customers for unsatisfactory service.
  • The value of any packages of supplies which do not include any margin scheme. These are the supplies – you should account for VAT on these in the normal way.
  • Amounts collected by you as an agent, if your commission is readily identified.
  • Any discount that you’ve agreed upon by the customer.
  • Forfeited deposits and cancellation fees received from customers who cancel bookings if you use method 1 to calculate tax points, or you use method 2 and have received 20% or less of the agreed price.

If your business falls under TOMS, Please get in touch with ACCOTAX – TOMS Accountants 

 

Courtesy: ACCA

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