Turnover question

[pitchandstay]

Hi,

If I'm a travel agent collecting payment from customers on behalf of my clients (holiday parks, airlines etc) then passing that money on to them minus my commission, what is classed as my turnover? Would it be the combined total of booking or only my commission?
Thanks

 

[elaine@cheapaccounting]

If you are thinking about turnover for vat then take a look at Tour Operators' Margin Scheme.

http://customs.hmrc.gov.uk/channels...ntent&id=HMCE_CL_000501&propertyType=document

 

[pitchandstay]

If I run a webiste that provides small independent hotels the facility for their customers to book online am I correct in saying TOMS does not apply?

The webiste simply advertises each hotel and gives the owner an admin area for them to manage sales etc however the payment is processed online and sent to the website owner who deducts commission and forwards to the hotel.

 

[RAL]

If you are acting as an agent, then no TOMS do not apply. Your turnover would be commission you received.

The commission is a taxable supply for the vat purpose.

 

[pitchandstay]

Much appreciated - thanks!