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Tour Operator Margin Scheme & Xero Software

Can Xero handle TOMs? I'm looking for a small account practice to help me with this function

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I've been looking for an accountant to help me set up as a small business that runs outdoor activities with accommodation, transport and guides in the UK and Europe. I believe I can deploy TOMs given the services/products I sell. I'd like to use Xero to manage my accounts remotely and have the accountants simply check my work periodically and complete the required Ltd. returns and director issues.

So far I've only come across local firms that lack the TOM knowledge. My turnover is not as significant as its a lifestyle business...suffering from a slight Brexit downturn at present but waiting for the promised upturn ;-)

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Hallerud at Easter
19th Jun 2019 20:04

These guys appear to be on top of the MTD regulations and TOMS- no idea if they are any good or otherwise, I have no connection with them, but their website looks reasonably competent so no reason to believe they would not fit the bill- they certainly appear to be on top of what records need to be digital which is a good starting point.

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By accountantccole
20th Jun 2019 09:46

We are based in the Alps so have lots of UK/Euro clients who use TOMS and Xero - depending what you are doing and where the bigger issue might be foreign taxes (accommodation might give you a foreign establishment and if France is involved, French transport sector is highly regulated). I'll message you our details

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By johnt27
20th Jun 2019 11:38

You can get TOMS to work on Xero - it requires a bit of setting up and now that the MTD module has been rolled out it makes it easier to make manual adjustments/corrections that are sometimes required under TOMS.

Sage 50c can be set up for TOMS but as a system it's not as well integrated as Xero and we're starting to see clients in the sector move to Xero from a convenience/efficiency point of view.

Happy to assist.

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Replying to johnt27:
By buxtonr
16th Jan 2020 16:58

Hi John,
I wonder if you could explain how I can get TOMS to work on Xero. I have just started using Xero and have registered for MTD but yet to file a VAT return.

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By Watbooks
25th Jun 2019 08:38

Yes, TOMS VAT will apply to you - if you have gone over the registration threshhold?

As has been mentioned TOMS can work in Xero. There is no module that will calculate everything for you, so the annual calc at year end and entering the TOMS VAT estimate as you go along will still be manual. But there are lots of ways of making a complicated set of rules more straightforward!

I work for myself and have migrated and set up many tour ops and other travel related business in Xero as one-off jobs. I also show them how to run it themselves so they can enter the VAT, keep up to date and get trip by trip p+l info.

Using a firm like WHA (I can recommend from experience) mentioned above is definitely worth it over a non-travel accountant for the insight, hints and rule changes.


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