HMRC looks set to negotiate with the events and conference industry over the thorny issue of the Tour Operators' Margin Scheme (TOMS).

Major changes to the scheme in 2010 netted business travel agencies and the business-to-business event market, preventing them from applying a recoverable VAT rate to bills.

Issues also arose in relation to events with agencies unable to reclaim VAT if an event included the agency selling items such as accommodation, passenger transport and the services of a guide.

Prior to the 2010 changes, event-management agencies were able to opt out of the scheme.

Senior HMRC figures are now set to discuss the issue with Eventia, the official trade body for the events and live marketing industry, and accountant and Saffery Champness VAT expert, David Bennett, in the hope that the industry might obtain greater clarity on the scheme.

Bennett, who also sits on Eventia's regulation committee, said he had a fruitful meeting with HMRC last week, in which they agreed to continue discussions.

'There are a number of issues surrounding TOMS, but primarily there's uncertainty about what the rules should be. We are looking at the real possibility of developing a guidance note with HMRC, to bring greater clarity to the issue. It's a good start and is a lot more than exists currently.'

An HMRC spokesman said: 'HMRC is considering the applicability of the Tour Operators Margin Scheme (TOMS) to the events and conference sectors following the removal of the "opt out" from January 2010, and is aware of the difficulties that this has created. We are hopeful of engaging with industry representatives as part of this process later in the year.'