Free guide
TOMS without the spreadsheet
How tour operators and their accountants can handle the Tour Operators Margin Scheme without breaking the digital link to the ledger.
Last reviewed: 23 June 2026
What's inside
- 1
Why TOMS catches everyone out — and which businesses are actually affected (much broader than tour operators)
- 2
Where the workflow breaks: booking-vs-departure dates, the provisional VAT trap, the year-end annual adjustment
- 3
How OneSixth handles TOMS alongside Xero, QBO, Sage, and FreeAgent
- 4
What OneSixth deliberately doesn't do — and why we're not a CRM
- 5
Three ways to engage if you want to take a closer look
Get the guide
The PDF downloads instantly — no email required. The form below is entirely optional.
Stay in touch (optional)
Optional — we'll add you to product updates if you want to stay in touch. We don't share or sell email addresses.
Common questions
Who has to use the Tour Operators' Margin Scheme?
TOMS is mandatory for any business that buys in travel services (accommodation, transport, car hire) and resells them in its own name as principal or undisclosed agent — not just tour operators. It catches conference organisers, event and wedding planners, and management companies. If you resell travel you bought in your own name, you're likely in TOMS whatever you call yourself.
How is VAT calculated under TOMS?
VAT is due on your margin — selling price less the bought-in cost of the travel — not on the full sale. At the 20% rate the VAT is 1/6 of the margin, and you can't reclaim input VAT on the bought-in travel; it's absorbed into cost.
Can Xero, QuickBooks, Sage or FreeAgent handle TOMS automatically?
No. None of the major cloud platforms calculate the TOMS margin or the year-end adjustment natively — the standard route is custom tax codes plus a spreadsheet, with a manual journal to the return. OneSixth runs the calculation alongside the ledger instead.
Is the VAT point the booking date or the departure date?
Departure. VAT becomes due when the customer travels, often months after booking and payment — and because standard ledgers hold only one transaction date, that gap is the root of most TOMS workflow problems.
Does TOMS still apply to non-UK holidays after Brexit?
Since 1 January 2021 the margin on travel enjoyed outside the UK is zero-rated, while UK travel stays standard-rated under TOMS; mixed sellers must split the margin between the two.