ERP Software for UK Businesses

MTD for Income Tax Self Assessment (ITSA) launches in April 2026 for businesses and landlords with gross income exceeding 50,000 pounds. From April 2027, the threshold drops to 30,000 pounds. This requires quarterly digital submissions of income and expense summaries to HMRC, followed by a final declaration. Yukti connects directly to HMRC's MTD APIs for both VAT and Income Tax, submitting returns electronically and receiving confirmation without requiring businesses to use bridging software or manual uploads.

UK VAT operates at a standard rate of 20%, with a reduced rate of 5% for certain goods and services, and a zero rate for essentials like most food items and children's clothing. The rules about which products fall into which rate category are notoriously detailed. Yukti includes a UK VAT rate engine that applies the correct rate based on product classification, with support for the domestic reverse charge mechanism used in construction (CIS) and other sectors.

Post-Brexit customs requirements add complexity for businesses trading with the EU. Goods moving between the UK and EU now require customs declarations, and businesses must account for import VAT through postponed VAT accounting (PVA) or pay it at the border. Northern Ireland operates under the Windsor Framework with different rules for goods. Yukti handles postponed VAT accounting entries automatically and generates the data needed for customs declarations.

Payroll in the UK requires PAYE (Pay As You Earn) income tax deduction, National Insurance contributions for both employer and employee, student loan repayments, and auto-enrollment pension contributions. Real Time Information (RTI) requires employers to report payroll data to HMRC on or before each pay date. Yukti submits Full Payment Submissions (FPS) and Employer Payment Summaries (EPS) directly to HMRC through RTI.