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Muhammad Haider
Muhammad Haider,
Category: Tax
Satisfied Customers: 816
Experience:  Director at HM Accountax
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Can I ask question on VAT TOMs margin scheme?

Customer Question

Hi,
Can I ask question on VAT TOMs margin scheme?
Submitted: 13 days ago.
Category: Tax
Expert:  Muhammad Haider replied 13 days ago.

Hi,

Please go ahead.

Regards

Muhammad

Customer: replied 13 days ago.
Hi,
I work on 10% commission basis (not fixed) with my supplier. I am VAT registered.I supply halls / studio on rent to various commercial clients.I charge my client hall hire fees + booking fees both with VAT. Client pay me the fees and then the space owner invoices me (sometimes they invoice me with VAT)How do I invoice my clients and who pays VAT. I currently charge my client,
hall fees + VAT and Booking fees + VAT. E.g £1000+ VAT for hall and £100+ VAT booking.
I collect £1,200 + £120. Space owner invoice me for £900 or sometimes £900+VAT.I have come across TOM margin scheme. Does this apply to me? Where I only pay VAT on my commission.
Customer: replied 13 days ago.
Expert:  Muhammad Haider replied 12 days ago.

Hi,

By the sounds of it - TOM margin scheme doesn't apply to you and you'll be using the traditional VAT scheme.

Regards

Muhammad

Customer: replied 12 days ago.
Can I use Margin scheme?
Expert:  Muhammad Haider replied 11 days ago.

No

Customer: replied 11 days ago.
I have been advised the following:
TOM does not apply to you either as you are not a tour operator
As the way you work the charges you incur and in fact disbursements - link here with the information you will need
https://www.gov.uk/guidance/vat-costs-or-disbursements-passed-to-customersDoes this apply to me?
Expert:  Muhammad Haider replied 10 days ago.

Nope, it doesn't