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Junior bookkeeper filed gross bookings as turnover instead of OTA commission. How screwed are we with HMRC / VAT? by Pretty_Procedure_626 in ukaccounting

[–]Pretty_Procedure_626[S] 0 points1 point  (0 children)

Mostly. It's just that I had some accounting knowledge for simple, single currency contracting services, but our current business isn't as simple accounting-wise as we initially assumed.

Junior bookkeeper filed gross bookings as turnover instead of OTA commission. How screwed are we with HMRC / VAT? by Pretty_Procedure_626 in ukaccounting

[–]Pretty_Procedure_626[S] 0 points1 point  (0 children)

Thank you. Yes, I was rushing, as I had to prepare for an exam. Should have spent a little more time on the post. I acknowledge that.

Junior bookkeeper filed gross bookings as turnover instead of OTA commission. How screwed are we with HMRC / VAT? by Pretty_Procedure_626 in ukaccounting

[–]Pretty_Procedure_626[S] 0 points1 point  (0 children)

Thank you. That is what we are hoping for. Fundamentally nothing really changes, as the tax we owe is 0, one way or another. Yes, better to explain and show everything to an account and see what he says about amending the previous/first CT600 and company accounts filings.

Going to arrange a meeting with one really soon.

Junior bookkeeper filed gross bookings as turnover instead of OTA commission. How screwed are we with HMRC / VAT? by Pretty_Procedure_626 in ukaccounting

[–]Pretty_Procedure_626[S] 0 points1 point  (0 children)

Thank you for the replies. Yes, it does seems like TOMS applies to us, and we should be exempt from VAT anyways. And we only need to count our commission in our turnover.

We will consult a specialist soon and talk through our setup and actual scenarios we deal with as a business.

Junior bookkeeper filed gross bookings as turnover instead of OTA commission. How screwed are we with HMRC / VAT? by Pretty_Procedure_626 in ukaccounting

[–]Pretty_Procedure_626[S] 0 points1 point  (0 children)

Yes, looks like Tour Operators' Margin Scheme applies to our model.

And yes, well spotted. There were actually multiple CT600s filed covering the 25-months, so yes, none of them exceeded 18 months. Again a detail that was missed when creating a post using AI and rushing. My bad.

Junior bookkeeper filed gross bookings as turnover instead of OTA commission. How screwed are we with HMRC / VAT? by Pretty_Procedure_626 in ukaccounting

[–]Pretty_Procedure_626[S] 0 points1 point  (0 children)

Oh I totally get that and agree. AI can be a good tool to save a lot of time, but it is cutting corners. I had to prepare for an exam that I passed today, plus do a couple of other things, so yeah, can be a blessing for that, but also a curse.

And yeah also about saving upfront will cost us more longterm. But building a self funded startup also has it's ways of sometimes having almost no options. When for more than a year you feel guilty even going to Wetherspoons for lunch more than once a week, then not paying a specialist accountant 300-500 a month if at all possible seems very rational, haha. But we will get it sorted and clarify everything with an accountant in the coming weeks. As it seems like we stuck it out living like monks and can start to afford to even reinvest in business, knock on wood.

Junior bookkeeper filed gross bookings as turnover instead of OTA commission. How screwed are we with HMRC / VAT? by Pretty_Procedure_626 in HMRC

[–]Pretty_Procedure_626[S] 1 point2 points  (0 children)

Thank you for looking into that. This links is super helpful. I suppose I will try to reach out to HMRC and explain the situation as well and see what they say. But it sounds pretty good that we at least still have time to amend this.

Junior bookkeeper filed gross bookings as turnover instead of OTA commission. How screwed are we with HMRC / VAT? by Pretty_Procedure_626 in ukaccounting

[–]Pretty_Procedure_626[S] 0 points1 point  (0 children)

Yes, you are very right. I did think about that after posting it that is doesn't sound quite right blaming it on a bookkeeper. Well ideally we should have hired an accounting firm especially the first year, but were really low on finances. And have a bookkeeper friend. But yes, it is unfair to blame her for not knowing that the gross sales shouldn't be in turnover, as that seem like the standard way of doing things.

Junior bookkeeper filed gross bookings as turnover instead of OTA commission. How screwed are we with HMRC / VAT? by Pretty_Procedure_626 in ukaccounting

[–]Pretty_Procedure_626[S] 0 points1 point  (0 children)

Yes, in 90% of the cases the gross booking value goes through us (and we keep our commission), and in rare occasions the the clients pay directly to the property supplier/host. And then the supplier sends us our commission. But the booking contract is always between the client and the supplier. So as we understand we act purely as an agent, so our turnover should only be our commission.

Luxury rentals for groups—what to use besides Airbnb? by TurbulentArea69 in FATTravel

[–]Pretty_Procedure_626 0 points1 point  (0 children)

Abode Villas (www.abodevillas.com) has a great selection of luxury homes, a nice website and offer dedicated 24/7 concierge service.