Travel Reference
In-Depth Information
organisation, will use the information included in a
limited company's accounts to make judgements on
how well it is performing. These include:
•
Tax authorities - H M Revenue and Customs need
to see accurate records for correct assessment of
income tax, National Insurance and VAT.
•
Owners - all those who have invested, or are
Tax returns and VAT
considering investing, capital into a travel and tourism
business, will be keen to assess profi tability, liquidity
and activity, in the past, present and future. How
the organisation is performing is the responsibility
of management and is, therefore, an assessment of
how well they deploy their resources;
HM Revenue and Customs (HMRC) is the single
government agency that handles all the tax and VAT
matters that were previously the responsibility of the
Inland Revenue and HM Customs and Excise. All
travel and tourism organisations, from sole proprietors
to public limited companies (plcs) must submit tax
returns to HMRC. Some small businesses choose to
do this themselves, while most use the services of an
accountant. VAT is a tax on sales of goods and services.
Companies with a turnover in excess of £70,000 (April
2010 fi gures) must register for VAT and charge VAT at
17.5 per cent on their goods and services - this will rise
to 20 per cent in 2011. Once registered, a company
can claim back any VAT it is charged for goods and
services. If it is in its interest to do so, a company whose
turnover is less than £70,000 per year can choose to
register voluntarily for VAT.
•
Shareholders and investment brokers - individuals
and organisations that own shares in companies, as
well as their advisers and brokers, will need access
to accounts to check fi nancial performance;
•
Managers - all managers have a duty of stewardship,
i.e. to report to the shareholders and to operate
the organisation in the shareholders' best interests.
Effective managers in travel and tourism will monitor
progress throughout the year, by comparing actual
with budgeted results and taking steps to correct
any problem areas;
•
Members of staff - will be interested to see
information on the company's performance, as it
may be an indicator of future job security, promotion
prospects, etc.
Contribution to global and UK
economy
•
Providers of fi nance - whether a banking institution
We saw on page 62 that travel and tourism organisations
make a substantial contribution to tourism in the UK
economy and worldwide.
in the private sector, or a public sector sponsor,
providers of fi nance will be interested in how well
an organisation can repay its debts, now and in the
future;
