News - Published 18th April 2016

Don’t get caught out by the ATOL renewal changes

2016 ATOL renewal changes

The Civil Aviation Authority (CAA) various changes to the ATOL renewal process which came into force on 1st June 2016, which have arguable seen a more stringent review of applications. However, the financial tests will come in to force for renewals applications in September 2016.

Currently, ATOL registered businesses are split into three categories;

  1. ATOL holders with an ATOL turnover of over £20m
  2. ATOL holders with an ATOL turnover up to £20m
  3. Small Business ATOL holders (SBA’s), who have under 500 passengers and an ATOL turnover of less than £1m

There are no major changes to the large ATOL holders and they will continue to have ongoing monitoring on a quarterly or monthly basis which will include a review of their financial performance, liquidity and any changes to the business.

For other ATOL holders, the CAA have introduced a range of new tests to assess the financial position of the business. SBA’s will be subject to four tests and ATOL businesses with a turnover of up to £20m will be subject to a further three tests as follows:

Download Menzies ATOL changes summary document.

In addition to the above the CAA have also introduced the following:

  1. Any ATOL business with an ATOL turnover of over £5m will be required to have audited accounts, even if there is not a statutory requirement for them.
  2. From 1st April 2016, only ATOL reporting accountants can undertake the ATOL renewals and this requires the accountant to undertake additional training and to be recognised by their reporting body. Menzies have received the necessary recognition and are authorised to undertake this work.

If you would like us to undertake the ATOL renewal for you or for further information on the issues mentioned above, please contact Dave Gosling at

Menzies Hospitality and Leisure sector team advise hotels, pubs, clubs and leisure operators, as well as a number of sector-dependent clients working to find solutions to industry issues, utilising our expertise in everything from business strategy and corporate finance, to audit and tax advice.

Read more about our Hospitality and Leisure sector expertise.

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