Odoo accounting and tax in United Kingdom
Every United Kingdom tax and accounting item we configure and test before a go-live, printed in full rather than condensed.
10 items Printed as checked, not condensed.
Tax rules that shape an Odoo configuration in United Kingdom
Each item below is one thing the tax setup has to get right before go-live.
- 1
VAT standard rate is 20%. The reduced rate is 5% (for example children's car seats and home energy) and the zero rate is 0% (for example most food and children's clothes).
- 2
VAT registration is compulsory once total taxable turnover for the last 12 months goes over 90,000 pounds.
- 3
VAT returns are usually filed every 3 months. The deadline to file online and to pay is one calendar month and 7 days after the end of the accounting period.
- 4
Making Tax Digital for VAT covers all VAT-registered businesses. GOV.UK states they should all now be signed up. Returns are submitted from compatible software through HMRC's MTD VAT API, which is what Odoo's l10n_uk_reports module connects to.
- 5
Making Tax Digital for Income Tax started on 6 April 2026 for sole traders and landlords with qualifying income over 50,000 pounds in the 2024 to 2025 tax year. The 30,000 pound band (2025 to 2026 income) joins on 6 April 2027, and the 20,000 pound band (2026 to 2027 income) on 6 April 2028.
- 6
Construction Industry Scheme deductions are 20% for registered subcontractors and 30% for unregistered ones, with 0% for gross payment status. VAT, materials, plant hire, fuel and consumable stores come out of the payment before the percentage is applied.
The reporting framework your United Kingdom books sit inside
What your statements have to comply with, and what that means for the chart of accounts.
- 1
Company Tax Returns should be filed online. The return is due 12 months after the end of the accounting period, and Corporation Tax is due 9 months and one day after the end of the period.
- 2
HMRC's free service for filing company accounts and Company Tax Returns closed on 31 March 2026. From 1 April 2026 companies must use commercial software to file annual accounts and Company Tax Returns with HMRC.
- 3
Companies House accounts reform now starts in April 2028, not April 2027. From that date all companies must file accounts using commercial software in iXBRL, abridged accounts are removed, small companies and micro-entities must file a profit and loss account, and web and paper filing of accounts closes.
- 4
The FRS 102 periodic review amendments apply to accounting periods beginning on or after 1 January 2026, with early adoption allowed. They bring in a five-step revenue model based on IFRS 15 and on-balance-sheet lease accounting for lessees based on IFRS 16, with exemptions for short-term and low-value leases.
Checked Localization notes on this page checked on 22 August 2026.
Rates, formats, thresholds and submission windows change. We configure against the rules in force at build time and confirm every figure with your accountant or tax advisor before sign-off. If a rule moves after go-live, it is a support ticket, not a rebuild. Read more on our Odoo localization service.
How we build accounting and tax for United Kingdom
The delivery method behind the list above. The same four steps on a 10-user rollout and on a multi-company programme, with the depth scaled to the scope.
- 1 Chart of accounts from your accountant. We configure against the mapping your accountant signs, not a default template someone picked in the install wizard.
- 2 Every tax gets a test document. An invoice, a credit note and a period report per tax, checked against a figure your accountant produced independently.
- 3 Opening balances reconcile. Prior-period data is loaded and tied back to your last filed set of accounts before anyone posts a live transaction.
- 4 Filing outputs come out of Odoo. Reports are produced from the system, checked line by line, then handed over with a written procedure so your team runs them without us.
What we need from you to quote it
Bring these to the first call and you get a scoped, priced accounting and tax plan for United Kingdom instead of a range.
- โ Your current chart of accounts and the tax codes in use today.
- โ The last filed set of accounts and the last filed return.
- โ The name of the accountant or tax advisor who signs off the configuration.
Services behind this work
The rest of the United Kingdom localization detail
Each topic has its own page with the full item list, the same way this one does.
Full detail, printed as checked.
Payroll in United KingdomFull detail, printed as checked.
Payments in United KingdomFull detail, printed as checked.
Shipping in United KingdomFull detail, printed as checked.
United Kingdom country overviewServices, modules, client work and delivery for United Kingdom.
Accounting and tax in other markets we cover
Running the same rollout across borders? These pages carry the same depth for each market, so you can compare before scoping a multi-country phase.
Scope accounting and tax for your United Kingdom rollout.
Send us the list above with your answers against it. We come back with what is configuration, what is a connector, and what is a build, priced before the project starts.