The eagerly awaited judgment of the Supreme Court in Secret Hotels2 (UKSC 16) has favoured the taxpayer.

The issue was whether the UK-based ‘travel agent’ margin (or commission) was taxed under TOMS [Tour Operators Margin Scheme], in that the supply was bought and sold, or treated as agency commission payable by hotels where room bookings were made, in which case TOMS would not apply.

Although of great importance to the mysteries of TOMS, the case is also highly relevant to the general issue of status as agent as distinct from principal.