Travel companies reminded about new digital VAT return rules - TravelMole


Travel companies reminded about new digital VAT return rules

Wednesday, 14 Feb, 2019 0

ABTA members are being reminded of the fundamental change to tax administration being introduced by HM Revenue & Customs (HMRC) which requires most UK companies to maintain their accounts information in a digital format and file VAT returns digitally from April 1 this year.

Companies with a taxable turnover above £85,000 will be affected by the new ‘Making Tax Digital for VAT’ obligations, meaning manual records are no longer accepted and VAT return forms will need to be submitted digitally via accounting software, rather than the current process of manually entering the VAT return figures onto the HMRC portal.

All businesses within Making Tax Digital will need to keep records and file returns digitally using ‘functional compatible software’ – defined by the HMRC as a programme or set of programmes, products or applications which are able to record and preserve digital records, submit digital tax returns and receive digital information from the HMRC. 

Some businesses are exempt from the requirements if their religious beliefs prevent them from using computers or for reasons of age, disability or remoteness of location. Those businesses which have registered voluntarily (those with a taxable turnover below the threshold) can opt into the arrangements.

ABTA has two guidance notes for members. The first gives an overview of Making Tax Digital, including what should be kept in a digital format, and the second looks at it in the context of VAT TOMS.

Both are available in the MemberZone at abta.com.

There is also a dedicated webpage with information about ABTA Partners that can offer members further support.

ABTA members will also be able to hear more about the new process at the association’s annual Travel Finance Conference, taking place at KPMG in Canary Wharf, London on the February 26 and 27. There will also be a dedicated break-out area for further information and one-to-one guidance.

ABTA’s director of finance and resources Carolyn Watson, said: "It is important that our Members plan ahead and make sure their accounting systems are ready for Making Tax Digital. Software and process changes may need to be implemented, so businesses will need to be well prepared."



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Lisa

Lisa joined Travel Weekly nearly 25 years ago as technology reporter and then sailed around the world for a couple of years as cruise correspondent, before becoming deputy editor. Now freelance, Lisa writes for various print and web publications, edits Corporate Traveller’s client magazine, Gateway, and works on the acclaimed Remembering Wildlife series of photography books, which raise awareness of nature’s most at-risk species and helps to fund their protection.



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