The ATOL (Air Travel Organiser’s Licence) scheme is a cornerstone of the UK travel industry, offering essential consumer protection for flight-inclusive package holidays. For businesses selling such packages, holding an ATOL licence is mandatory. 

Keep reading to understand ATOL and how Bracey’s Accountants can support your application and management process. 

Which ATOL Licence Do You Need? 

There are two main ATOL licence types: 

• Standard ATOL: For larger businesses with higher turnover. 

• Small Business ATOL (SBA): Designed for businesses with fewer sales (up to £1 million licensable revenue annually or 500 passengers). 

Choosing the right licence is key to managing costs and compliance. 

What Are the Costs of an ATOL Licence? 

1. Application Fees: 
   a. Small Business ATOL: £1,408 (non-refundable). 
   b. Standard ATOL: £2,386 (non-refundable). 
   

2. Financial Commitments: 
   a. £1,250 deposit (held until trading under ATOL ceases). 
   b. £30,000 paid-up share capital (permanent). 
   c. Bond required for additional security – minimum £50,000. 

3. Ongoing Costs: 
   a. Monthly or quarterly APC (Air Passenger Contribution) returns. 
   b. £2.50 per passenger payable to the CAA. 

When to Apply or Renew? 

ATOL licences are valid for 12 months and must be renewed annually. Renewal deadlines are tied to financial year-ends: 31st March and 30th September. Applications open three months before expiry, so start early (e.g., January) to avoid delays. 

Non-compliance, such as failing to issue ATOL Certificates, can lead to penalties, licence revocation, or legal action. 

What Does the Application Process Involve? 

The application process requires submitting detailed business and financial data to the CAA.
You must: 

• Appoint an ATOL Reporting Accountant (ARA). 

• Provide financial forecasts (cash flow, profit and loss, and balance sheets) for at least 18 months. 

• Pass an ATOL-specific knowledge test. 

How Can Bracey’s Accountants Help? 

1. Financial Guidance: 
   a. Develop cash flow forecasts and profit/loss projections tailored to ATOL requirements.
   b. Align business plans with operational goals. 
   

2. Compliance Management: 
   a. Serve as your ARA, ensuring applications and renewals meet CAA standards. 
   b. Manage APC returns and regulatory filings. 

3. Cost Navigation: 
   a. Prepare you for deposits, share capital requirements, and bonds. 

4. Tailored Support: 
   a. Help small businesses manage up to 500 passengers or scale to exceed £20 million turnover. 
   b. Provide advice on record-keeping and regulatory changes. 
   

At Bracey’s Accountants, we combine travel industry expertise with financial compliance to make the ATOL process straightforward. Focus on growing your business—we’ll handle the details. 

Ready to Get Started? 

For expert guidance on acquiring or renewing your ATOL licence, contact Bracey’s Accountants today. Let us simplify the process and set your business up for success.