Integrating SumUp with HMRC-approved accounting software

Do you own a VAT-registered business in the UK? If so, you should be aware the UK government now requires your business to sign up for the Making Tax Digital for VAT (MTD) programme.

What is MTD? Simply put, it’s a mandate that requires businesses to record their transactions and taxes digitally. The initiative was first announced in 2015 and first implemented in 2019. Since implementation, VAT-registered businesses with turnover exceeding the £10,000 VAT threshold have been required to keep records digitally.

The idea behind this initiative is to make administration more efficient, resilient, and productive. MTD aims to make reporting more transparent and faster, freeing up more time for business owners. Keeping records in real-time provides a more accurate picture of your business and allows you to make more informed decisions.

How Do These Changes Affect My VAT-Registered Business?

So, what’s changed since the introduction of MTD? Only the account you use to send in these records. You’ll have to use the MTD account to file monthly and quarterly VAT reports. Luckily, signing up is easy. All you need if you’re a business owner is:

• Your business email address.

• A Government Gateway ID and password, which you can create during the signup process.

• Your VAT registration number and latest VAT return.

• Your National Insurance number (for sole traders), company registration number, and Unique Taxpayer Reference (for limited companies and partnerships).

You’re also required to have HMRC-approved accounting software before signing up. The UK government happily offers support to businesses making the shift to digital. Together with the MTD Accessibility Working Group and Additional Needs Working Group, HMRC ensures all businesses have access to online accounting software.

This includes working with software developers to make sure there are options available for individuals with cognitive, visual, motor, or hearing difficulties.

How SumUp POS Simplifies the Digitisation Process

With the state of payment technology today, digitising your business is easier than ever. Adopting digital bookkeeping now helps ensure you’re ready for the shift in regulations. For a simple, all-in-one point-of-sale solution that will satisfy HMRC and streamline your business tasks, check out SumUp’s Point of Sale system.

SumUp POS shows you sales records, average order volume, customer orders, and more — all on one screen. You can manage your inventory and review your stock in a few taps, as well as receive real-time updates automatically.

With features geared towards various business types, SumUp POS makes life easier, whether you’re in retail, gastronomy, or hospitality. Customers can place orders easily, and you can then save their data to offer more personalised service next time. You can also download detailed analyses of your business’ performance. Additionally, SumUp POS speeds up your checkout with fast orders and flexible payments, so you can process transactions in-person or remotely using your POS.

Integrating SumUp with Other HMRC-Approved Accounting Software

What makes SumUp POS the ideal accounting solution for small businesses is the range of integrations and add-ons available. In addition to all of the features on offer, SumUp has made the POS system compatible with dozens of other services, ensuring all your business needs are covered.

Using SumUp POS gives you access to two HMRC-approved accounting software solutions for making tax digital. QuickBooks and Xero let you get ahead of the game and easily set yourself up to fulfil your online accounting obligations.

The Benefits of SumUp QuickBooks Integration

If you have a QuickBooks account, you can connect it to your SumUp POS through the dashboard by following the steps on the screen. QuickBooks stretches across every aspect of your finances, from payroll to sales to tax returns.

Connecting your bank account lets you see real-time sales reports, payment details, and earnings forecasts. Streamline payroll with automatic pay runs, pension enrolment, and automatically filing payroll tax.

Most importantly, because it automatically calculates and files your VAT returns with HMRC, QuickBooks ensures you’re compliant with VAT tax regulations. You can set up reminders to make sure you always know when due dates are coming and how much tax you owe.

Connecting SumUp POS for QuickBooks VAT Return

Connecting QuickBooks to your SumUp POS means:

• Changes in sales and inventory are automatically logged.

• Every product and category can be mapped to specific items or services.

• You can create and edit any service or delivery charges.

Connecting QuickBooks to SumUp POS means your sales data is used to create your VAT return, and you’ll never miss a filing deadline.

The Benefits of SumUp Xero Integration

Your other option for an accounting solution compatible with Making Tax Digital is Xero. Like QuickBooks, Xero is MTD-compliant, and it’s already received massively positive feedback. In fact, 88% of users say Xero makes MTD easier for them. In addition to automatically filing VAT returns for you, Xero lets you:

• Pay your bills on time. Just enter the account information and payment schedule.

• Manage your staff with Xero Payroll.

• Store important files online.

• Track and manage fixed assets.

• Create and send purchase orders.

Connecting Xero to your SumUp POS means no more manually entering your sales info or updating your records. The integration transfers all your information seamlessly to your Xero account, saving you a significant amount of time and delivering your reports instantly.

There are a host of other integrations that target other areas of your business. For example, Deliveroo for food delivery, Mailchimp for email marketing, Workforce for staff management, and the list goes on. You can even build your own integrations if you’ve got some coding skills.

Go Digital Now with SumUp Xero and SumUp QuickBooks Integrations

The UK is steering its economy towards digitisation by requiring VAT-registered businesses to file their returns electronically. All you need to do to get started is sign up on the UK government website, as long as you have HMRC-recognised software in place.

SumUp POS gives you two great options for said software, saving you time by automatically sharing your financial data. That means you’ll have sales reports, future projections, and VAT reports available without any extra work. Automating your VAT returns also eliminates human error — computers don’t misread numbers.

Interested in how SumUp POS can help your business? Use the form below to get in touch with our sales team.

Make Tax Digital FAQs

Does SumUp work with Xero?

Yes. SumUp Xero integration allows you to have your VAT returns filed automatically, which means no more having to manually update your financial information. All information is transferred seamlessly across platforms.

Why should my business switch to a digital POS system?

As of 2022, all VAT-registered businesses with turnover exceeding the £10,000 VAT threshold must keep financial records digitally. Switching to a digital POS system not only brings you in line with government regulations but also makes running a small business more efficient.

How do digital POS systems benefit small businesses?

Digital POS systems allow small businesses to streamline many of their business activities. This includes managing stock, generating reports, streamlining ordering and payment processes, and much more. 

Does SumUp offer a digital POS system?

Yes. SumUp POS is designed to streamline many common tasks carried out by small businesses in their day-to-day activities. SumUp POS can also be integrated with other HMRC approved accounting software for further streamlining of financial activities.

Does SumUp report to HMRC?

While SumUp does not report to HMRC directly, it can be used to make your business more compliant with existing HMRC regulations. It can also be integrated with HMRC-approved accounting software, like Xero and QuickBooks, to make reporting to the HMRC more streamlined.