How Corient Secured a £24,000 VAT Refund Under TOMS: 5 Steps to Streamlined Tax Compliance

Introduction

When managing VAT under complex frameworks, such as the Tour Operators Margin Scheme (TOMS), businesses face heightened scrutiny and operational pressure. One such client turned to Corient, a trusted provider of financial and bookkeeping outsourcing services, to navigate these challenges and optimise VAT compliance across multiple business locations over 18 months.

The Initial Problem: What Went Wrong?

Shortly after registering under the TOMS VAT structure, the client struggled to manage VAT across numerous operational hubs. The TOMS framework, with its layered rules and margins, proved difficult to track manually. The absence of a robust system resulted in backdated and mismatched sales records, risking potential non-compliance and loss of VAT claims.

Corient’s First Solution: The Fix

Corient initiated a foundational strategy focused on:

• In-depth understanding of the TOMS structure and how its regulations are applied to the client’s operations.
• Strategic planning to streamline VAT processing under TOMS, from invoicing protocols to mapping margins correctly.
• Introducing structured systems to match sales channels, identify backdated transactions, and ensure every sale is aligned with the correct geographic location for reporting.

However, this clarity soon revealed an underlying issue.

The New Problem: A Surprise Roadblock

As implementation progressed, Corient discovered that:

• Numerous transactions were recorded before the TOMS registration and needed to be reversed.
• Sales mapping across multiple locations was inconsistent and prone to manual errors.
• Ensuring strict TOMS compliance required more profound expertise and validation to avoid legal or financial repercussions.

Corient’s Second Solution: Fixing the New Problem

To address this complexity, Corient deployed a detailed, methodical solution:

Step 1: Transaction Reversal

Backdated sales from before TOMS registration were systematically reversed to ensure compliance from the registration start date.

Step 2: Sales Location Mapping

Each sale was individually mapped to its respective business location, allowing for accurate VAT categorisation and reporting.

Step 3: Ongoing Reconciliation

Automated and manual checks were conducted regularly to verify data accuracy across all locations and systems.

Step 4: Expert Review and Validation

A leading UK VAT consultant was brought in to review and endorse the approach, assuring that the process aligned with TOMS and broader VAT regulations.

Step 5: Outsourcing for Efficiency

The project was managed through Corient’s outsourced bookkeeping services, ensuring timely execution without overloading internal resources.

The Final Outcome: Success Story

Corient’s rigorous efforts culminated in:

•  A £24,000 VAT refund was successfully claimed
•  Process verified and approved by UK VAT experts
• A scalable VAT compliance framework is now in place for the client’s future growth

“We were unsure how to handle VAT under TOMS, but Corient handled everything. Their understanding, attention to detail, and expert coordination helped us recover £24,000 we thought we’d lost.”

Key Takeaways: Why This Matters for Businesses

• Specialist VAT schemes like TOMS require tailored expertise
• Accurate sales mapping and compliance reviews prevent revenue loss
• Outsourced financial support provides both precision and peace of mind

Where complexity meets compliance, Corient delivers clarity and control.