- 21st May 2019
How to stay compliant with new HMRC regulation for VAT
On the 1st April 2019 HM Revenue & Customs (HMRC) implemented Making Tax Digital (MTD) for VAT, which means hotels who file UK VAT returns, must change the way they keep and submit such data to HMRC.
MTD is an overhaul of the UK VAT system that replaces manual processes and record keeping with digital ones, aiming to save time, reduce errors and cut the risk of penalties.
As of 1st April 2019, all businesses that are VAT registered with an annual turnover exceeding £85,000 (current threshold) are required to keep digital VAT records and send VAT returns to HMRC using MTD compatible software, for its first VAT period beginning on, or after this date.
Note: Some VAT reporting businesses are viewed as complex by HMRC, such as those within an HMRC approved VAT group filing singular VAT returns, these businesses have a separate MTD compliance launch date of 1st October 2019. More information for such businesses is available on HMRC’s website.
However, after 1st April 2020 HMRC have advised that the current permitted manual transfer of data into the primary accounting system to facilitate MTD filings, will be prohibited and this can only be done going forward via a digital upload into the primary accounting system.
Currently it is common practice to create a manual journal at the end of a business period to transfer sales, payments and control accounts into the primary accounting system. But after 1st April 2020 this will be non-compliant.
Guestline has a solution to assist your business with the second MTD requirement (digital links) - the Guestline Financial Export Tool, as the data from your PMS is transferred digitally, not manually, into your primary accounting system.
If you would like to know more about Guestline's Financial Export Tool or to discuss an accounting data extraction integration speak to your Sales Account Manager or pop your details below.
*Guestline also recommend seeking the guidance of a suitably qualified external tax advisor for aspects of Making Tax Digital in relation to your own business tax compliance matters.
Download our interactive PDF below to learn more or, submit your details below to discuss further.
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