EPOS & Inventory Software for UK Small Businesses: VAT, Card Payments and Stock
UK shops call it EPOS, restaurants and cafes call it a till system, and small service businesses just want something that stops invoices and stock living in three different places. Whatever you call it, here is what to look for when you choose point of sale and inventory software for a small UK business, with VAT and clean records in mind.
VAT: the 20% rate, the reduced rates and the registration threshold
The standard UK VAT rate is 20%, with a reduced 5% rate and a 0% rate for certain goods. You must register for VAT when your taxable turnover goes over the registration threshold, currently £90,000 over a rolling 12 months, and you can register voluntarily below it. Check the current figures on GOV.UK or with your accountant, because thresholds are reviewed.
A POS cannot decide your VAT status, but it should make the maths painless: a configurable tax rate on each sale, products you can mark as taxable or not, and itemised records. In RetailMatrix you set the rate to what applies to you and keep sales, receipts and invoices in one place for your accountant.
VAT returns: what a POS does and does not do
VAT-registered businesses in the UK need accurate digital records and a way to submit their returns. Many small businesses use accounting software for the return itself and a POS for the daily till.
RetailMatrix is a sales, stock and invoicing system, not a tax-filing tool. It does not file VAT returns or connect to HMRC. Treat it as the system that records your sales, stock and invoices accurately, and check with your accountant how those records flow into the software you use for your return.
Taking payments the way UK customers pay
UK customers expect contactless and card, plus bank transfer for larger or business-to-business invoices. Look for a system that handles card payments through a recognised provider and lets you record the rest.
RetailMatrix includes Stripe and PayPal connections, records card sales taken on your own card reader and bank transfers at the till, and lets you add any other method your shop accepts, such as Apple Pay, Google Pay or a specific card terminal, under Settings. Money goes straight to your own accounts.
Inventory, quotes and invoices in one place
A lot of small UK businesses outgrow a spreadsheet the moment they have more than one person selling or more than a few hundred products. Look for live stock updates on every sale, low-stock alerts, supplier purchase orders, and returns handled against the original sale.
If you also sell to trade customers, quotations that turn into invoices with one click save hours, and an outstanding-balance view per customer shows who still owes you money.
A short checklist for a UK small business
- Can you set VAT rates and mark products as taxable or zero-rated?
- Are sales, receipts and invoices exportable or readable for your accountant?
- Does it take card payments through a provider you already trust?
- Can you add payment methods specific to your shop, such as Apple Pay or a particular terminal?
- Does stock update on every sale across every till and staff member?
- Are staff permissions separate so only you see profit and cost prices?
Where RetailMatrix fits, and where it does not
RetailMatrix suits independent retailers, phone and electronics repairers, wholesalers and service businesses that want one system for sales, quotes, invoices, clients and stock, with a 14-day free trial and no card required. It runs in your browser, so you need an internet connection while you sell, and it does not file VAT returns or connect to any tax authority.
Frequently asked questions
What is the UK VAT registration threshold?
At the time of writing it is £90,000 of taxable turnover over a rolling 12 months. You can register voluntarily below it. Always confirm the current figure on GOV.UK or with your accountant.
Does RetailMatrix file my VAT return?
No. RetailMatrix does not submit VAT returns to HMRC or connect to HMRC systems. It keeps your sales, tax and stock records, and you would use accounting software for the return itself. Ask your accountant how to move the records across.
Can I take card payments with RetailMatrix in the UK?
Yes. You can connect Stripe or PayPal, and you can also record sales taken on your own separate card reader. Money goes directly to your own account.
Is EPOS the same as a POS?
Yes. EPOS stands for electronic point of sale, the term most commonly used in the UK for a computerised till and sales system.
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Start Your Free Trial See all featuresThis guide is general information, not tax, legal or accounting advice. Tax rates, thresholds and rules change, so confirm your own obligations with your tax authority or a qualified accountant.