Tax tip: VAT planning when booking business travel or hotel accommodation?

VAT planning when booking business travel or hotel accommodation?

What are the VAT implications of booking hotel accommodation for employees travelling within the UK on business?

The method of booking business travel or hotel accommodation in the UK can affect the VAT outcome. For example if a business sends delegates to a conference that it has booked as a package with a conference organiser that arranges conferences with hotel accommodation for delegates the effect of the TOMS should be considered – see Notice 709/5 section 2 (tinyurl.com/ynnyv3ak).

The TOMS is a mandatory scheme that applies to transactions involving travel or accommodation that has been bought in and resold without material alteration by a principal or undisclosed agent.

One of the effects of the TOMS is that the supplier the conference organiser in the above example cannot issue a VAT...