After the first of April of this year HMRC is introducing MTD or Making Tax Digital in the UK. This means that VAT returns will need to be filed electronically, so that there is a digital trail from the source data to the return submission. All UK companies
including travel businesses will need software systems that are able to store, supply and receive digital records via the HMRC’s platform.
So as a travel company you are probably wondering what this will mean for your business and what you will need to do. Here are a few tips to start with.
Get acquainted with MTD
For starters you may want to familiarise yourself with the actual initiative and what it is that your business needs to do to be compliant. There is a lot of information available on the internet, and we've found these two articles to be very useful.
There is this one by Elman wall or you can find more information on HMRC’s website.
Conduct a thorough review of what processes need changing
Identify the procedures you may need to modify e.g. how are you currently submitting your date to HMRC? If you are managing your bookings and invoicing manually using excel or paper, how will you be submitting your files to HMRC’s digital
gateway in the future? What will you need to change in terms of processes in order to do this? Should you perhaps invest in software that can export data directly to accounting software like Sage 50, QuickBooks and Xero?
In order to make the transition go smoothly, make sure that you have taken relevant measures to support things like extra reporting, data collection
and workflow demands that could present itself.
Ensure you have compatible software
If you’re currently using software to manage your accounting and tax filing processes, you will want to check with your software supplier whether they have made any changes to their product to help make their customers be compliant with HMRC’s
initiative. If they are, there’s no need to be worried. If they’re not, then now is as good time as any to start thinking about whether you need additional software or change tech provider all together in order to ensure your business
is ready when Making Tax Digital comes into effect.