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Overview

As your business grows and expands into the United Kingdom, the United Kingdom CSF helps to keep your Epicor Financials system compliant from day one to save time and expense. The CSF package contains the most used financial and operational functionalities in the country including:

  • SEPA payments
  • UK MTD compliance
  • Intrastat reporting
  • Construction Industry Scheme (CIS) support
  • Domestic Reverse Charge

Payment Formats

The United Kingdom CSF package supports several payment formats for domestic and international payments.

SEPA - Single Euro Payment Area

The objective of SEPA is to help ensure that payments within Europe are as simple and efficient as those that occur within a single country. The SEPA payments use the Euro currency. Almost all European countries support the SEPA payment format, even those where the domestic currency is not Euro.

SCT - SEPA Credit Transfer

The unified SEPA Credit Transfer payment method replaces the previously used local payment systems denominated in Euro in Europe, both for domestic and cross-border payments.

SDD - SEPA Direct Debit

The SEPA Direct Debit is a pull-based payment method that allows a business to directly withdraw the payment from its customers bank account, for which a mandate needs to be signed by the customer. The debtor and the issuer of the invoice must each have an account with a Payment Service Provider (PSP) located in the SEPA area.

Others

Other payment formats such as BACS and others for various UK banks are available under Industry Extension package which will require additional licensing.

Electronic Tax Reporting (MTD)

Making Tax Digital (MTD) requires businesses to submit their key financial accounting data to Her Majesty's Revenue and Customs (HMRC) periodically.

Epicor Financials enables an application recognised by the HMRC to communicate the required data to the HMRC via REST APIs. It includes submission of tax declarations and viewing tax obligations, liabilities, payments and previously submitted tax returns. The MTD functionality uses tax box definitions for data collection.

The Group Tax Reporting feature is available in Epicor Financials 10.2.600 and later versions. With this feature, the companies sharing the same VAT Registration Number (VRN) will be able to submit their tax declarations as a single entity.

Reports

Intrastat

Intrastat is the system used for collecting statistics on the trade and movement of goods between the member states of the EU. Organizations that are VAT-registered and trade in goods with other EU member states are required to enable details of these transactions in formats including CSV, XML or IDEP.

EC Sales List

The EC (European Commission) Sales Lists are used to report the VAT on sales between the countries in the EU. The EC Sales List contains information on sales and transfers of goods and services to VAT registered businesses in other EU countries.

EC Sales are reported by the calendar period and done on an accrual basis; therefore, the report is usually filed monthly or quarterly.

The report contains trading party information, total value of goods and services supplied in the book currency, and country code of the trading party.

Construction Industry Scheme (CIS)

Under the Construction Industry Scheme (CIS), contractors deduct an amount from the payments to a subcontractor and transfer it to the HMRC.

The CIS feature in the UK CSF package allows to:

  • Identify a supplier as a subcontractor
  • Validate the supplier CIS certificate number and expiry date in purchase orders and supplier invoices
  • Generate monthly payments and deduction reports for subcontractors
  • Generate monthly report export files on all payments made to the subcontractors and submit them to HMRC

Plastic Tax

The UK government intends to reduce the environmental impact of single-use plastic packaging.

Businesses that produce or import plastic packaging with less than 30% recycled content are liable to pay the tax.

The plastic tax feature supports the following:

  • Multiple UOM's
  • Define plastic packaging content for each part number
  • Set up multiple plastic packaging details per part record
  • Packaging tax incurred can be added back to inventory
  • Manually adjust values for packaging tax return for a particular period

Domestic Reverse Charge

The supplier (i.e. subcontractor) has to identify if their customer (i.e. contractor) is the end user (or final customer in the chain) or not.

If the recipient of the service is not the end user, but VAT registered, and the payment is subject to CIS rules, then reverse charge should apply; otherwise, normal VAT rules should apply.

Therefore, subcontractors should ask their customers if they are the end user. The customer will have to inform the supplier that they are end users and that VAT should be charged in the normal way instead of being subject to the reverse charge.

The invoices with reverse charge should show the VAT rate, VAT amount and reverse charge reason.

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