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TOUR OPERATOR MARGIN SCHEME (TOMS) If you are a business owner in the travel industry who agonises over TOMS, you have come to the right place, because in this blog I will try to shed some light on this rather opaque topic with the goal to give you the assurance that you are heard, understood and helped to properly deal with this scheme. The Tour Operator Margin Scheme (TOMS) is specific to the travel industry, as its name gives it out. It is a way in which businesses that buy and re-sell travel, accommodation and other services can account for VAT without losing their profit. This is because if you are registered for VAT, you must normally account for VAT on the full selling price of your supplies. However, as a tour operator based in the UK, you only account for VAT on the margin you make on your margin scheme supplies. Many businesses in the travel industry and even many accountants perceive the Tour Operator Margin Scheme (TOMS) VAT calculation as a scary giant. As with any scary giant, the reasonable course of action would be to run away. However, this may not be an option, since the ever-vigilant eye of HMRC will eventually catch up with you. So if you are having sleepless nights about TOMS, I can totally understand your pain. The good news is that in most cases, TOMS is rather straightforward. In the following, I will attempt to clarify the main features of this scheme.