Accounting Guide for Travel Agents based in the UK

UK travel agents face distinct regulatory and financial requirements, from ATOL bonding to the Tour Operators’ Margin Scheme (TOMS). Our highly ranked Master Your Finances: The Essential Accounting Guide for Travel Agents provides an excellent foundation for accounting best practices. Its advice on reconciliations and expense tracking applies globally, but UK agents must adapt for local compliance. The following essentials complement the US guide.

1. ATOL Compliance and Client Deposits

Under the UK’s Air Travel Organisers’ Licensing (ATOL) scheme, agents selling air-inclusive holidays must hold an ATOL licence and protect client funds through bonding or trust accounts.

Action: Create an ATOL Trust Account under Assets to track client funds held separately. Reconcile deposits with Civil Aviation Authority (CAA) reporting using the US guide’s reconciliation structure.

2. TOMS VAT for Package Travel

Agents selling package travel must use the Tour Operators’ Margin Scheme (TOMS), where VAT (20%) is calculated on profit margin, not total sale.

Action: Replace Sales Tax Payable with TOMS VAT Payable. Categorise income by product (e.g. cruise, hotel) to calculate margins accurately. File quarterly returns via HMRC using Xero or Sage.

3. ABTA and Consortium Fees

Membership in ABTA or consortiums such as Advantage Travel Partnership provides supplier leverage but carries annual reporting costs.

Action: Add ABTA/Consortium Membership Fees under Operating Expenses. Track alongside supplier incentives for visibility.

4. Pension and Tax Obligations

Employers must manage auto-enrolment pensions, National Insurance and Corporation Tax.

Action: Add Pension Contributions Payable under Liabilities and distinct HMRC tax accounts, following the US guide’s ledger format.

5. Higher Card Processing Fees

UK merchant fees may be higher due to interchange limits and GDPR-related costs.

Action: Expand the Merchant & Payment Processing Fees account (502) to monitor these charges closely.

For a complete accounting setup, begin with our US guide’s framework and adapt it for UK compliance. Need support with TOMS, ATOL or HMRC filings? Contact Antravia UK for expert guidance.

Published October 2025. For personalised advice, consult a qualified professional. Antravia UK provides advisory services only.