Tour Operators' Margin Scheme and HMRC's Recent Ruling

MHA, in collaboration with ASAP (The Association of Serviced Accommodation Providers) invites you to an essential webinar on Monday 17 February, addressing a significant VAT dispute that is impacting serviced accommodation providers.

This VAT accounting scheme applies to UK businesses that package and resell travel-related services, including flights, hotels, and transfers, taxing only the profit margin rather than the full sales value.

However, HMRC has challenged whether TOMS also applies when accommodation is leased and then rented out.

In a recent ruling, the Upper Tribunal sided with HMRC, a decision that could have major financial and operational consequences for serviced accommodation providers, including increased VAT liabilities and potential reassessments of past VAT payments. The affected operator has until 14 February to appeal, but regardless of their decision, this case has industry-wide implications.

During this webinar, Sue Rathmell and Jasmine Martin of MHA will break down the ruling, explore the potential outcomes of an appeal, and discuss what this means for operators both in the UK and globally. This is a crucial opportunity to stay informed and prepare for possible changes ahead.