ACCOTAX - Accountants & Tax Consultants’ Post

Are you aware of the Tour Operator’s Margin Scheme (TOMS)? This VAT accounting scheme applies to businesses involved in purchasing and reselling travel, accommodations, and select services. For serviced accommodation businesses meeting specific criteria, TOMS offers advantages like minimising VAT liabilities and facilitating input VAT recovery on indirect expenses such as accountancy and agency fees. In our upcoming blog, we look into #TOMS eligibility for serviced accommodation businesses, its benefits, and share expert tips for those managing such ventures. https://lnkd.in/g3pjJvxd #accountants #tax #tips #VAT #advisory #wearedns Adam James MAAT Raman Boparai Reza Tavakoli Kate Fisher Ather A. Drita Morina Vishal Ballee Sami Joseph Mwamba Quest Douglas Hutton

𝗡𝗮𝘃𝗶𝗴𝗮𝘁𝗶𝗻𝗴 𝗩𝗔𝗧 𝗳𝗼𝗿 𝗥𝟮𝗦𝗔 𝗕𝘂𝘀𝗶𝗻𝗲𝘀𝘀𝗲𝘀: 𝗨𝗻𝗱𝗲𝗿𝘀𝘁𝗮𝗻𝗱𝗶𝗻𝗴 𝗧𝗢𝗠𝗦 For those who has a porfolio of R2SA properties, VAT is an important consideration. Under the standard VAT scheme, businesses must register for VAT when their total sales approach or exceed £90k. This means you would need to adjust your pricing model - either by increasing your nightly rate by 20% to cover the VAT or absorbing the VAT into your rates. For many R2SA operators, this can significantly impact your profit margin and cash flow. However, there’s an alternative VAT scheme that could benefit you: the Tour Operators' Margin Scheme (TOMS). If you're currently using or considering TOMS for your R2SA business, here are some key points to keep in mind: 1. 𝑰𝒏𝒗𝒐𝒊𝒄𝒆𝒔: TOMS doesn’t allow for VAT invoices. Instead, issue a regular invoice with a note indicating that you’re using TOMS. 2. 𝑽𝑨𝑻 𝑹𝒆𝒈𝒊𝒔𝒕𝒓𝒂𝒕𝒊𝒐𝒏: The VAT registration threshold is based on your profit margin, not your total sales. 3. 𝑶𝑻𝑨 𝑭𝒆𝒆𝒔: Online Travel Agent (OTA) fees should not be included in your margin calculation, as they are general business expenses. Ensure you use the total amount guests paid, not the amount after OTA deductions. 4. 𝑴𝒊𝒙𝒆𝒅 𝑰𝒏𝒄𝒐𝒎𝒆: Income from sources like long-term rentals (AST) does not count towards your VAT registration threshold. 5. 𝑬𝒙𝒕𝒆𝒏𝒅𝒆𝒅 𝑺𝒕𝒂𝒚𝒔: The reduced value rule doesn’t apply if a guest stays for more than 28 consecutive days. 𝗜𝘁’𝘀 𝗲𝘀𝘀𝗲𝗻𝘁𝗶𝗮𝗹 𝘁𝗼 𝗰𝗼𝗻𝘀𝘂𝗹𝘁 𝘄𝗶𝘁𝗵 𝘆𝗼𝘂𝗿 𝗮𝗰𝗰𝗼𝘂𝗻𝘁𝗮𝗻𝘁 𝘁𝗼 𝗻𝗮𝘃𝗶𝗴𝗮𝘁𝗲 𝗧𝗢𝗠𝗦 𝗲𝗳𝗳𝗲𝗰𝘁𝗶𝘃𝗲𝗹𝘆 𝗮𝗻𝗱 𝗮𝘃𝗼𝗶𝗱 𝗽𝗼𝘁𝗲𝗻𝘁𝗶𝗮𝗹 𝗽𝗶𝘁𝗳𝗮𝗹𝗹𝘀. If you’d like to discuss this further, please reach out. I’m an accountant with specialised in helping R2SA operators to get clarity on their numbers. 😊

"Travel Smart, Deduct Right! 💼✈️ #BusinessTravelSavings #SmallBusinessTaxes #BusinessTaxTips #SelfEmployedTaxes #FreelancerTaxes #TaxPro #AccountingTips #TaxConsultant #BookkeepingHelp #PayrollServices

Deduct Travel and Meal Expenses Business-related travel and meal expenses are deductible, with travel expenses typically fully deductible, and meals being 50% deductible. Example: Business Travel Expenses: $5,000 (flights, hotels, car rental) Meals: $2,000 (50% deductible = $1,000) Total Deductible Expenses: $5,000 (travel) + $1,000 (meals) = $6,000 Revenue: $100,000 Taxable Income: $100,000 - $6,000 = $94,000 Travel and meals incurred for business purposes can be deducted, reducing the taxable income. #tax #accounting #Bookkeeping #audit #payroll

FLYN Premium Offer: track your 70% ratio progress throughout the season! 👉Want to stay in the loop with regular updates on the status of your yacht's 70% completion? Contact us and take advantage of our PREMIUM offer to find out what your 70% ratio is after the end of each commercial operation, to avoid bad suprises at the end of the year…📧 🔔What are the consequences if the ratio is below 70%? The yacht will not benefit from the VAT exemption status and will pay VAT in 2025 on suppliers, goods & services invoices and on the value of the yacht (if the yacht has never paid VAT or if the VAT was not accounted for previously). This VAT can be claimed back from the tax authority by your fiscal representative. 🔔What are the consequences if the ratio is equal or higher than 70%? The yacht will issue a certificate of commercial activity and benefit from the VAT exemption status for 2025. 📩If you want to learn more, contact us at noemie@flyn-yachting.com or by phone at +33 (0)6 26 89 20 73.

Navigating VAT on Travel & Food Expenses Recently, I was handling VAT for a client and came across an interesting question: Can you claim VAT on restaurant and food bills when traveling to meet clients? 🤔 Here's the takeaway: When your business incurs travel and subsistence costs (like meals at restaurants) as part of work-related trips, VAT is usually reclaimable—but it depends on the context: If the meal is for employees traveling for business purposes (e.g., meeting clients, working away from the office), the VAT on restaurant and food expenses can be reclaimed. ✅ Entertainment costs for clients or customers, however, are a different story. The VAT on client meals is not recoverable, as HMRC views this as business entertainment rather than a business necessity. ❌ In this case, because the meals were for employees traveling to deliver services at the client’s premises, the VAT was claimable. 🔍 Pro tip: Always keep detailed receipts and ensure the costs are properly categorized to avoid any surprises during a VAT inspection! Have you faced any tricky VAT questions recently? Let's discuss in the comments! #ExploringUKaccounting #VAT #TaxTips #Accounting #UKBusiness

Another common error when it comes to VAT, Can you claim VAT on subsistence? Let’s clear this up 👇 Subsistence expenses – meals, drinks, and accommodation while working away or travelling for business – are common, but can you reclaim the VAT? 🟣 Yes – but only if the conditions are met: The expense must be for business purposes. You must have a valid VAT receipt. It applies to employees (including directors of a limited company). 🟣 What can you reclaim VAT on? Hotel stays during business travel. Meals and drinks purchased for employees while working away. 🟣 What can’t you reclaim VAT on? Meals and drinks for clients (business entertainment is excluded). Subsistence expenses for sole traders or partners (HMRC sees this as a personal expense). A simple worked Example: You’re a director staying overnight on a business trip: • VAT on your hotel? ✅ Reclaimable. • VAT on your dinner? ✅ Reclaimable. • VAT on dinner with a client? ❌ Not reclaimable. Top Tip: Always get a VAT receipt and keep your records clear. Upload them as you go on an app like Hubdoc or Dext, It’s easy to miss out on reclaiming what you’re entitled to! Are you missing VAT reclaims on subsistence? Drop me a message if you want to make sure you’re not leaving money on the table. #VAT #AccountingTips #BusinessExpenses

📰 [𝐍𝐞𝐰𝐬 𝐔𝐏𝐃𝐀𝐓𝐄] VAT Refund Service Now Available Across EUROPE! We’re excited to announce that we can now recover VAT on your business expenses incurred during events not just in France but throughout Europe! Thanks to the Chamber of Commerce and Industry France International (CCI France International), we offer a streamlined and efficient VAT refund service tailored specifically for you. This is a fantastic opportunity to enhance your bottom line by reclaiming costs from your business activities across Europe. Don’t let this chance slip away! Quick Refund: You will receive your refund via bank transfer within 1 to 3 months, minus a service commission on the recovered VAT. ❓ Why Recover VAT? You can reclaim VAT on a range of business expenses, including: • Events: Trade shows, exhibitions, conferences, seminars, booth rentals, room rentals, furniture, decoration, and transport. • Dining: Restaurant and catering expenses. • Fuel: Up to 80% of VAT on diesel. • Rentals: Commercial vehicle rentals and furniture rentals. • Services: Advertising, legal services, IT services, and more. Note: VAT is not recoverable on hotel stays, car rentals for personal use, flights, train tickets, taxis, or personal gifts. 📈 Easy and Fast Process 1. Send Documents: Provide copies of invoices showing the country's VAT, a signed mandate, and an original business registration certificate. 2. Bank Details: Supply your bank details to transfer the recovered VAT. For more details or to start the process, feel free to reach out to: • Stéphane: director@ccift.org.tw • James: info@ccift.org.tw • Maxime: service@ccift.org.tw https://lnkd.in/gyCzUaGq #FrenchChamberTaiwan #VATRefund #BusinessSavings #TradeShows #BusinessGrowth #CCIFranceInternational

📰 [𝐍𝐞𝐰𝐬 𝐔𝐏𝐃𝐀𝐓𝐄] VAT Refund Service Now Available Across EUROPE! We’re excited to announce that we can now recover VAT on your business expenses incurred during events not just in France but throughout Europe! Thanks to the Chamber of Commerce and Industry France International (CCI France International), we offer a streamlined and efficient VAT refund service tailored specifically for you. This is a fantastic opportunity to enhance your bottom line by reclaiming costs from your business activities across Europe. Don’t let this chance slip away! Quick Refund: You will receive your refund via bank transfer within 1 to 3 months, minus a service commission on the recovered VAT. ❓ Why Recover VAT? You can reclaim VAT on a range of business expenses, including: • Events: Trade shows, exhibitions, conferences, seminars, booth rentals, room rentals, furniture, decoration, and transport. • Dining: Restaurant and catering expenses. • Fuel: Up to 80% of VAT on diesel. • Rentals: Commercial vehicle rentals and furniture rentals. • Services: Advertising, legal services, IT services, and more. Note: VAT is not recoverable on hotel stays, car rentals for personal use, flights, train tickets, taxis, or personal gifts. 📈 Easy and Fast Process 1. Send Documents: Provide copies of invoices showing the country's VAT, a signed mandate, and an original business registration certificate. 2. Bank Details: Supply your bank details to transfer the recovered VAT. For more details or to start the process, feel free to reach out to: • Stéphane: director@ccift.org.tw • James: info@ccift.org.tw • Maxime: service@ccift.org.tw https://lnkd.in/gyCzUaGq #FrenchChamberTaiwan #VATRefund #BusinessSavings #TradeShows #BusinessGrowth #CCIFranceInternational

Even if you miss your flight you can get a refund of some part of the Ticket Fare.. Airlines will refund applicable taxes and fees if a passenger is a no-show, which means they miss their flight without canceling or changing their booking in advance. This includes statutory taxes, User Development Fee (UDF), Airport Development Fee (ADF), and Passenger Service Fee (PSF). The taxes and fees can amount to 15–20% of the total fare. However, if a passenger cancels their ticket within the two-hour no-show window, they will only receive a refund for airport taxes. After the flight has departed, a no-show passenger will only be eligible for a refund of taxes. The amount of the refund and any modifications that can be made depends on several factors, including the fare type, flight route, and the time of cancellation or change. Passengers can request a refund by visiting the manage booking section on Airlines website.