Tax in the United Kingdom

The U.K. travel industry operates within one of the most distinctive tax frameworks in the world. The Tour Operator Margin Scheme (TOMS) fundamentally alters how VAT is calculated for agents and tour operators, applying VAT only to the profit margin rather than to total turnover. This system, though beneficial, requires precise record-keeping and reporting to HMRC.

Hotels and hospitality businesses charge standard VAT rates on accommodation and related services, while also managing corporation tax on profits and PAYE/NIC obligations for staff. For companies trading cross-border, withholding tax and double tax treaty relief may also come into play.

With Making Tax Digital (MTD) now mandatory for VAT, accurate digital record-keeping and compatible accounting software are essential. The U.K. remains a stable yet tightly regulated tax environment where compliance discipline directly protects profit margins

How Antravia U.K helps

Where Travel meets Smart Finance

TOMS & VAT

TOMS & VAT calculation and reconciliations

Corporation Tax and Tax Readiness

Accounting & FRS 102/IFRS Reporting

HMRC

Accounting, Finance & CFO services

Tax Experts - UK Tax Services for Travel Agents and Hotels

At Antravia, we guide UK-based travel agents, tour operators, DMCs, and hotels through domestic tax intricacies, from TOMS VAT to ATOL compliance, turning regulatory hurdles into streamlined success. Whether managing seasonal revenues or international packages, we optimize your UK tax position to enhance margins and support expansion, keeping you compliant and competitive in a post-Brexit landscape.

Our UK tax services include:

TOMS VAT Compliance & Planning

Master Tour Operators' Margin Scheme VAT with Antravia's compliance service, essential for UK travel agents and hotels bundling packages. We calculate margin VAT on travel supplies (e.g., flights/hotels), ensuring accurate declarations under HMRC rules while reclaiming input VAT on overheads, avoiding overpayments and penalties (up to 30% + interest). For DMCs with global itineraries or hotels adding excursions, our planning integrates with ATOL for seamless reporting. We've recalibrated TOMS for clients to recover 10-15% more, rebalance yours.

Corporation Tax Returns (CT600)

File your Corporation Tax with confidence through Antravia's CT600 service, tailored for UK travel businesses navigating fluctuating revenues. We maximize reliefs like R&D for app development or capital allowances on vehicle fleets, while handling loss carryforwards for off-peak seasons, thus ensuring HMRC-compliant submissions that minimize your 25% rate exposure. For agents with commission income or hotels with property costs, our audits uncover overlooked deductions, tying into VAT for holistic efficiency. Clients cut liabilities by thousands so contact us to streamline yours.

ATOL & Package Travel Regulations Compliance

Safeguard your operations with Antravia's ATOL Compliance service, critical for UK travel agents and tour operators selling packages. We review bonding, financial protection, and reporting under CAA rules, ensuring ATOL certificates cover liabilities while integrating with TOMS VAT for accurate pricing. For DMCs bundling flights/hotels or hotels offering add-ons, our audits prevent £1k+ fines and build client trust. We've fortified ATOL setups for dozens of pros... protect yours.

PAYE & Payroll Tax Planning

Run a compliant payroll with Antravia's PAYE service, designed for UK travel agents and hotels with seasonal teams. We manage RTI submissions, NI contributions, and P11D reporting for perks like staff travel, deducting allowable expenses to lower your 13.8% employer NI burden. For operators with gig guides or hotels with tipped staff, our planning forecasts CIS deductions and handles auto-enrolment, avoiding HMRC penalties (up to £3k per employee). We've smoothed payrolls for fluctuating travel seasons.

Self-Assessment Tax Returns (SA100)

Simplify your personal taxes as a UK travel business owner with Antravia's Self-Assessment service, capturing deductions for home offices, mileage (45p/mile first 10k), and subsistence on trips. We handle schedules for rental income or sole trader commissions, optimizing reliefs like SEIS/EIS for investments while navigating 2025 changes to allowances. For agents freelancing incentives or hoteliers with side ventures, our filings minimize your 45% top rate exposure and integrate with corporation tax.

Inheritance Tax & Estate Planning for Business Owners

Secure your legacy with Antravia's Inheritance Tax Planning, vital for UK travel entrepreneurs passing on agencies or hotels. We structure Business Property Relief (100% IHT exemption on qualifying assets) and gifts, minimizing 40% exposure while aligning with wills and trusts. For DMCs with family stakes or hotels as family assets, our strategies preserve value amid 2025 thresholds (£325k nil-rate band). We've preserved millions in estates for travel families.

R&D Tax Relief Claims

Innovate tax-efficiently with Antravia's R&D Relief service for UK travel agents and hotels. Claim up to 33% cash credits on qualifying development (e.g., custom booking apps or sustainable hotel tech), enhanced for SMEs under SME scheme. We document projects, file CT600 addendums, and maximize reliefs (up to £520k cap), integrating with payroll for SME payroll offset. For operators digitizing tours or hotels greening operations, we've unlocked £50k+ refunds.

EU VAT Reclaim for UK Travel Agents & Hotels

Recover EU VAT efficiently with Antravia’s reclaim service, built for UK travel agents and hotels operating across Europe. We identify reclaimable VAT on hotel stays, trade fairs, marketing, and supplier invoices, preparing compliant 13th Directive claims for France, Spain, Italy, and beyond. Our team handles reciprocity checks, documentation, and translations to ensure claims are accepted and refunded directly in GBP or EUR. For operators attending exhibitions or hotels paying EU vendors, our reclaim planning strengthens cash flow, reduces overheads, and protects margins through structured, compliant filings. Review this page for more info.

Free “What’s Next” Consultation

UK taxes overwhelming your travel dreams? Antravia's free “What’s Next” consultation is your quick-win navigator. In 30 minutes, we assess your agent's or hotel's TOMS, ATOL, or self-assessment setup, spotting savings on deductions or reliefs, and outlining a plan for 2025 compliance. From seasonal payroll to R&D claims, get tailored insights without obligation. Join UK pros who've streamlined with our expertise. Schedule your free call - Contact us at Antravia UK

U.K. Tax - Blogs

Business Structure for UK Travel Agents

Sole trader, partnership, or limited company? Learn which structure works best for UK travel agents and tour operators, and how it affects tax, VAT, and compliance.. Link

Accounting for UK Travel Agents – TOMS VAT, ATOL, ABTA & more

Discover how UK travel agents can stay compliant and profitable in 2025. Learn about TOMS VAT, ATOL trust accounts, ABTA rules, FX risk, and selling travel into the U.S., with the latest industry data and practical accounting strategies. Link

VAT for UK Travel Agents and Tour Operators: What you need to know about TOMS

Understand how VAT and the Tour Operators’ Margin Scheme (TOMS) affect UK travel agents. Learn how to stay compliant and protect your margins.. Link

VAT Reclaim for Travel Agents and Hotels | How to recover what you’re owed

Many travel agents and hotels miss out on reclaiming VAT from foreign trips and supplier invoices. Antravia explains when VAT is recoverable, how to file claims correctly, and why proper VAT management improves cash flow and margins.. Link

Indirect Tax Risks for Travel Agents and OTAs

VAT is more than reclaim rules. Travel agents and OTAs face hidden VAT liabilities when selling packages, earning commissions, or misclassifying contracts. Learn how to protect your margins. Link

Review this page if you would like Antravia to help with your EU VAT reclaim.

How to Stay HMRC-Ready: Compliance Tips for Travel and Hospitality Businesses

Practical compliance tips for UK travel and hospitality businesses. Learn how to stay HMRC-ready and avoid penalties with structured financial controls. Link

Digital Record-Keeping and Making Tax Digital (MTD) for Travel Agents and Hotels

The UK’s Making Tax Digital rules expand in 2026, changing how travel agents and hotels file VAT and report income. Learn what systems to use, how to stay compliant, and how to prepare your accounting records with Antravia UK. Link