22 Nov

New guidance on VAT

From 1 April 2019, as part of HMRC’s Making Tax Digital (MTD) initiative, there will be a requirement for companies with a taxable turnover above £85,000 to keep certain records in digital form as well as filing your VAT records digitally. 
Earlier this year we issued an initial guidance note on this complex and extremely important area, which should be read in conjunction with the guidance issued by HMRC.  
Today we have issued a further guidance note detailing how MTD requirements interact with the Tour Operator Margin Scheme and tour operator’s obligations in relations to VAT calculations. It is important that Members plan ahead and make sure that their accounting systems are able to comply with the new requirements. Software and process changes may need to be implemented, so it is important to be well prepared. Members will be very keenly aware that failure to submit tax returns on time and correctly can have severe financial implications. 
Both guidance notes are intended to give Members a good initial steer through the new requirements and are available in the Members section of abta.com
We will be covering this topic at our Travel Finance Conference in February and we also have a number of ABTA Partners accountancy firms and systems experts who will be able to provide you with expert assistance if you need any further help, together with the ABTA tax helpline

Mark Tanzer, Chief Executive