Operators to get tax refunds after HMRC admits error
Dozens of UK tour operators could be paying thousands of pounds less tax – and qualifying for refunds – after ABTA successfully challenged an HMRC policy.
HMRC has agreed that forfeited customer deposits and other cancellation fees retained by operators should not be subject to VAT, provided they are using departure date as the tax point.
It comes after ABTA highlighted an error in HMRC’s policy relating to inclusion of cancellation fees in Tour Operators Margin Scheme (TOMS) calculations.
"Thankfully the error in policy has now been updated and businesses will be paying less tax," said Carolyn Watson, ABTA’s director of finance and resources.
Any businesses that have paid too much VAT since March 1 2019 can claim a refund by visiting and reviewing the new policy paper.
Members can also attend ABTA’s seminar on ‘A Complete Guide to VAT and TOMS in Travel’ September 19 and a Travel Tax Briefing event on October 23.
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
France prepares for a massive strike across all transports on September 18
Turkish tourism stalls due to soaring prices for accommodation and food
CCS Insight: eSIMs ready to take the travel world by storm
Germany new European Entry/Exit System limited to a single airport on October 12, 2025
Airlines suspend Madagascar services following unrest and army revolt