Forum

• # 123152
• Wed 19 Feb 2025 01:09 PM

Hi all

I have a potential new client who is running a property business (alike Air BnB) so I have now come across TOMS for the first time. There is so much info out there and I am getting a bit lost. Has anyone come across this and can explain this a bit better than the lengthy gov.uk documents? We are a Xero only practice so would be good to know if / how this would be calculated in Xero.  I don't want to go too far with the new client chats if this isn't something I could do or its difficult to manage in Xero.

Any info, help & guidance would be appreciated!

Thanks

Nicola 

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• # 123154
• Mon 24 Feb 2025 04:41 PM

Hi Nicola

I do TOMS for a tour operator who runs tours in the UK and EU.   The way I do the VAT for this is I run a profitability report for each tour which happens within the VAT quarter and then I do another one at the end of their financial year incase of late expenses.   I run it on Xero and for all the tours I have these under tracking categories and all classed as 'No VAT', so none of the items appear on the VAT return

When I run the prof reports, if the tour is in the UK then the vat is taken from the net profit  (e.g.  £6,000 net profit divided by 6 to get VAT amount), if it is outside the UK, then at present (since Brexit) they are zero rated.  I do a journal to get this into the VAT return.

Hope the above helps, but if not clear, then happy to discuss further.

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• # 123159
• Fri 28 Feb 2025 05:30 PM

Hi Nicola

Check that TOMS does apply - the sale is made up two or more elements.  Not enough info on 'property business' to see how it fits.

Check if they are an agent or principal.

Income is recorded as at date of departure.

Like Julie I use tracking categories for each separate trip. 

Xero will do this for you and there is no easy software that will.  You will need journals to get the VAT return correct.

They will have TOMS income and TOMS costs.  Make sure TOMS costs are directly related to the TOMS income. 

TOMS can be quite specialised and the stakes are high as they will want advice so feel free to ask them to find a specialist, it may well save your time!

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• # 123167
• Tue 11 Mar 2025 02:56 PM

Thank you so much both, this was very helpful!

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