Homeworking is an established model in the UK travel trade. A homeworking company or network typically provides things such as trading under its ABTA membership, ATOL arrangements, supplier agreements, booking technology, training and payment handling, in return for fees, a share of commission or both. Commission splits, fees and support vary widely between homeworking companies.

The ATOL point

The Civil Aviation Authority (CAA) says there is no legal definition of a homeworker. Its working definition is a self-employed travel professional running a business from home and offering travel booking services to consumers. Crucially, the CAA says a self-employed homeworker does not meet the definition of a “worker for an ATOL holder”, so the exemption for an ATOL holder’s own staff does not cover them. To sell flights, a homeworker must hold its own ATOL, sell as an agent for an ATOL holder under a written agreement or sell in another exempt capacity, such as membership of an ATOL Accredited Body.

Watch out for

• Home-based employees of an ATOL holder are treated differently from self-employed homeworkers.

• “Independent agent” can mean a homeworker or an independently owned shop.