Automated tax integration for UK companies to HMRC government VAT collections, compliant with HMRC “Making Tax Digital” programs.
Signup & Setup
When you sign up for the UK VAT (HMRC) Integration upgrade to Cetec ERP, you will gain access to an HMRC gateway maintained by Cetec ERP and accessible through the Cetec ERP interface itself.
Once the plugin is enabled, you will find a “login” button on the HMRC page inside Cetec ERP, where you will click to login to the HMRC portal, establish a permanent connection between the HMRC UK government portal and between your company HMRC account online with gov.uk and your company account with Cetec ERP. After logging in to the HMRC portal from the Cetec ERP application, the HMRC website will guide you through account setup.
Next, within the Cetec ERP application, you will work with your Cetec consultant to load in the base set of VAT codes (e.g. 0%, 5%, 20%, etc.) into your VAT rates database and ensure that the VAT codes are mapped properly to ensure boxes 1 thru 9 of the HMRC return can be automatically populated when it comes time to submit your quarterly returns.
How It Works
In Cetec ERP, VAT (tax) rates may be setup to default onto customer and vendor records, and are tracked on every sales invoice transaction (at the time of invoice creation against Sales Orders) and vendor invoice (at the time of voucher creation against Purchase Orders).
Cetec ERP summarizes tax amounts tracked on these transactions on any given period range (e.g. Quarter) you would like, providing providing user-friendly reporting on total sales VAT (output VAT) and total purchase VAT (input VAT). Additionally, Cetec ERP tax reports contain the ability to drilldown and justify the transaction details behind the VAT summary amounts.
For UK companies buying and selling in multiple currencies, robust multi-currency integrated support takes the exchange rate of any transaction (via daily peg of the exchange rate between home currency and the currency of the transaction), stores that VAT/tax amount, and displays that amount converted to your home currency (e.g. GBP) within the tax reporting modules.
Based on the VAT code assigned, and based what type of transaction it is (i.e. what “direction” the transaction is going via your VAT mappings), the system will map transaction amounts toward one of Boxes 1 thru 9 on the HMRC report. For any summary amounts listed in a Box 1 thru 9, you also have the ability to drill down per VAT code to justify how/why a box (in 1 thru 9) is summarizing to the total $ amount, for any period date range you define (normally this would be a “Quarter” for typical HMRC reporting requirements).
Then, through the Cetec ERP to HMRC API, and with a single click, submit your return electronically from the ERP system through the HMRC API to the HMRC government entity, and comply with the new “making tax digital” UK government set of initiatives.
Extras (included in Cetec ERP):
EC Sales Report to automatically report on sales/shipments to EU companies outside of the United Kingdom (with one-click export to Excel to submit to HMRC)
Intrastat report (one-click export to Excel to submit to HMRC)
If you are a UK company using Cetec ERP, Contact Us now and we will get you signed up and connected!