URGENT: legal update for clients operating under the Tour Operators Margin Scheme (TOMS) for VAT

There has been a significant Upper Tribunal ruling in the Sonder case which impacts FHL/Serviced Accommodation businesses and potentially other users of the Tour Operators Margin Scheme (“TOMS”) that operate in the UK land and property sector.

If you have any clients that operate in these sectors or apply TOMS in their VAT affairs then please reach out to propertytax@lbgroupltd.com so we can assist your clients in navigating these issues.

What does this mean for our clients?

If your client is impacted there will likely need to be detailed consideration made to the structure of their operations, business contract management and supply chain processes to avoid scrutiny and penalty / financial and tax losses as a result of this ruling.

Thank you,

Tom Butterworth