If you are due to renew your ATOL in September, you should consider the following important areas:
Refund Credit Notes
The CAA won’t start processing your renewal application unless your Refund Credit Note (RCN) returns are up to date. Even if you haven’t issued any RCNs, you must ensure you have submitted at least your June 2022 return to avoid any delays in your renewal being assessed.
Licence size
This time last year, there was still lots of uncertainty, making it hard to forecast how large your ATOL authorised turnover and passengers needed to be. Most ATOL holders aired on the side of caution. However, now that travel restrictions have been lifted, and trading has picked up, many have needed to submit variations to increase their licence size, which hasn’t always been an easy process.
To avoid this, think carefully about what size licence you need for the next year.
Bond limit
If you’re applying for a significantly larger ATOL but are already bonded, you’ll likely need a higher bond or alternative security such as a trust or escrow account.
Although we are seeing some insurer appetite returning, higher bonds are still difficult to obtain, and you may be asked to provide cash security to your insurer.
Timing
We recommend you renew as early as possible to avoid “The List” of non-renewers.
During the most challenging periods of the last two years, there were occasions when the CAA agreed to extend the renewal period. However, we don’t expect that to happen this time, so don’t leave it too long to start the process.
Role of ATOL Reporting Accountants (ARAs)
Auditors tend to come under more scrutiny during periods of heightened risk or economic flux. So it’s hardly surprising that ARAs have been extra diligent, and generally slower in signing off ATOL returns and other confirmations.
We expect this to continue, so it’s essential to agree on the timetable with your ARA to avoid delays in your renewal application.
If you need help applying for your ATOL or want to ensure you’re being treated fairly and consistently, please get in touch.
