⚠️Important: We would advise you to check the HMRC website for the most up-to-date information on long-stay accommodation VAT charges.
At the time of this article going to print, the HMRC applies a reduced value rule for guests staying over 28 consecutive nights to be charged 4% VAT for their stay from the 29th night onwards for the remainder of their stay.
For example, an unbroken stay of 60 nights would have 20% VAT applied for 28 nights, then 4% VAT applied for the next 42 nights.
Step 1: Create a 4% long-stay Tax Rule
You should create a tax rule with a 4% VAT value, like the example shown below:
Step 2: Create a Long Stay Analysis code
You should create a long-stay analysis code, like the example shown below:
Step 3: Ini settings update
To update the system Ini Settings, follow the steps below:
Within Rezlynx navigate to System, then Ini settings.
Select Auto Posting.
Within the Analysis Code section, set the Use Alternative Codes On And After X Days to 29.
📌Note: This means that the different charges will be applied to the system from day 29 onwards. If left blank, this feature is disabled.
4. Within the Adult and Child Accommodation, select the Long Stay analysis code from the drop-down menu.
5. Click Update to save the changes.
An example is shown below:
Step 4: Rate plan update
You need to apply the new long-stay analysis code to each individual rate plan that could be used for a long-staying guest.
To apply this analysis code to the rate plan, follow the steps below:
Within Rezlynx navigate to System, Rates and then select Rate Plans.
Select a rate plan that can be booked for more than 28 days. Within the rate plan, scroll down to Override Analysis Codes.
Select your long stay analysis code from the drop-down menu, as shown in the example below, and then click Save.
Repeat actions 2 and 3 until all rate plans longer than 28 days have been updated.
Step 5: Reservation re-save
⚠️Important: If you want these changes to affect all existing bookings currently within the system, which are not yet checked in, you will need to request a Reservation Re-save with our Support Team by raising a case.
A reservation ‘re-save’ will process as follows:
It will recalculate the charges for all existing and future reservations. It will not affect any Resident reservations - those will have to be amended manually, by reselecting the rate plan.
It will retain the current and total rate of the original reservation. Meaning that although the breakdown may have changed, the total original price will remain as it was. This includes overrides to rates, which will also remain at the overridden rate after the reservation re-save.
It will re-calculate projected revenue in any forecast reports. It will not change any closed periods.
The re-save will affect ALL reservations. There isn’t a facility to re-save reservations on a specific rate plan.