Scottish government ministers say there will be no compulsion for local authorities to implement a so-called tourist tax, but in a climate where councils are facing the squeeze on budgets, it could be eyed as a means to raise revenue to help balance the books.
With the number of beds continuing to rise in Aberdeen as new hotel openings come on stream, it remains a challenging time for the hospitality businesses.
So, the spectre of the tourism visitor levy (TVL), and how this might affect the value of visiting a region to visitors, may quite rightly be viewed as frightening.
The process to introduce the tourist tax in Edinburgh is going through the motions.
It may not be on the table here in the Aberdeen region, but cash strapped councils could be waiting to see how it rolls out.
There can be no ruling out that other areas could look on it as a method to generate income in the future.
Concern of having to foot extra costs to visit an area could impact on a region’s attractiveness to holiday makers.
We don’t have a crystal ball to predict the future but it’s always important to be aware of the potential threats that might be looming on the horizon.
That’s why we recommend taking steps to ensure your tax position is optimised. It’s good practice.
Many operators don’t think about their tax planning until after the year end, when it’s often too late to take actions required to minimise tax payments.
Our team are well versed in commercial and accounting issues, tax planning opportunities and compliance issues. We have a breadth of specialist knowledge throughout the hospitality sector – from family-run hotels, to restaurants, bars and pubs, and leisure firms.
Tax planning should be undertaken ahead of the year end so be sure to tap into our experience and knowledge to answer your specific questions and create tailor made solutions.
As accountants, we help clients through a careful analysis of their business in order to report back to HMRC as accurately as possible. Every case is different, but our goal towards client integrity and individual advice remains the same.