18/06/2026
**Tour Operators' Margin Scheme (TOMS): VAT for Travel Businesses**
If you're a tour operator or travel business, the Tour Operators' Margin Scheme (TOMS) is designed specifically for you. Like other margin schemes, you only pay VAT on the profit margin of your package holidays, not the full selling price.
**Real-life example:**
Lisa runs a small travel agency organizing package holidays. She buys a holiday package from suppliers for £800 and sells it to customers for £1,200. Using TOMS, she only pays VAT on the £400 profit margin, not the full £1,200 sale price. This approach keeps her VAT liability manageable and her accounting straightforward.
**Who benefits?** Tour operators and travel businesses looking to optimize VAT on package holidays.
Running a travel business and want to understand how TOMS could help? Call us on 01778 252712 or send us a message—we'll explain how it works for your situation.