Why the Travel Industry Needs Specialist Accountants
The Travel Industry is like no other. Unlike many areas of business, the Travel Industry is highly regulated. Navigating a safe passage through all the regulatory requirements, requires specialist expertise especially as travel businesses are so often in the public spotlight, perhaps now more than ever given the Covid pandemic.
How is it Different?
Specialised reporting is needed to meet the requirements of:
- CAA ATOL financial criteria and renewal process
- IPP reporting
- IATA’s financial requirements and risk assessment
How About Tax?
Travel Tax and TOMS is another area that requires expertise. VAT rules can be particularly complex and frequently changing, often meaning it is difficult to keep track, and to ensure VAT efficiency.
TOMS & Travel VAT
The Tour Operators’ Margin Scheme (TOMS) applies to businesses that buy-in and re-sell travel, accommodation and certain other services as principal or undisclosed agent. Although in some cases this scheme is a simplification, in many other cases it means an added degree of complexity in understanding the rules and calculating VAT due accurately.
Brexit has complicated the situation further and while the UK position is now more simple, the EU member states are one-by-one announcing their own interpretation of tour operators’ obligations.
Of course, TOMS is not the only concern of travel industry businesses – rest assured, the Elman Wall team has great experience advising on other VAT issues such as the merits of agency vs principal, input VAT recovery, the VAT place of supply, agency billback and VAT on credit card fees.
How Can EW Help?
Elman Wall Travel Accountants are award-winning auditors, tax and business advisors to over 200 travel companies, from leading and niche tour operators to leisure and business travel agents and accommodation only specialists.
Our expert in-house team is not only specialised in Travel Industry regulatory body reporting, but also has extensive knowledge and expertise in:
- operation and mechanism of a Trust or Escrow Account Model
- stakeholder expectations and practices including credit card acquirers, banks, bonding obligors, external investors and others
- R&D Tax Credits for the Travel Industry
- different reservations systems and how these link to your accounting software
- identifying exposure to risk
As Travel Industry experts, we work closely with our clients to ensure their business stays on the right side of its regulators, is ahead of the game when it comes to understanding these and other stakeholder agendas and to identify money saving opportunities. We are proud that many of our clients see us as a real asset and not an overhead for themselves and their businesses.
Furthermore, the Elman Wall Travel Team can work closely with Summit Advisory, our in-house Travel Business Advisors who help travel business owners grow, expand through acquisitions or sell their travel business, as well as Cavendish Ware+, in-house Personal Financial Planning and Investment Management specialists to ensure your own personal financial welfare and to protect your business.