At Cutter & Co we pride ourselves on being innovative and forward thinking through embracing change and technological advancements.
Our involvement in the HMRC pilot schemes began when the payroll Real Time Information (RTI) system was introduced, and we have since embraced and adapted to the Auto Enrolment pension regulations.
We actively seek to work with HMRC, enabling us to be amongst the first to trial these new systems. This means that when they become mandatory we know exactly what we are doing and stay ahead of the game.
The latest HMRC system to be introduced is a big one – Making Tax Digital (MTD). This means that everyone who is VAT registered from 5th April 2019 will have to keep their records in digital form. There will also be a requirement to submit VAT returns from a specifically designed software which can communicate with HMRC via their new Application Programming Interface (API). In the years that follow, this will also be rolled out to all companies and self-employed individuals.
Cutter & Co are already well versed in the software that will be able to handle these submissions, which includes, but is not limited to: Sage Business Cloud Accounting, Sage50, QuickBooks Online, Kashflow and Xero.
Over the last few weeks our manager, Mike Toone, has been working closely with Sage and HMRC to test the system and attempt to submit the first ever Sage cloud MTD return. One of the clients, whose June to August VAT return was chosen for this pilot, is Oak Lodge Doors – composite door specialists in Halesowen.
Not surprisingly, there were a few bugs in the system, however; Mike was able to work with Sage and HMRC until the issues were resolved – leading to the very first successful submission this morning!
Both HMRC and Sage have been quick to offer their thanks to both Mike and Cutter & Co for helping them with this first submission. HMRC were particularly grateful as we were able to help them pinpoint a crucial bug which had not previously been identified in trials with other software providers.
We have already added one more client to the trial, and are now actively looking to put more clients into the pilot, so that come 5th April 2019, they are also ready and compliant with the new regulations.
At Cutter & Co we feel we now have all the necessary tools in place for the mandatory introduction of MTD. If you have any concerns, questions or simply feel you would like to know more, please do not hesitate to get in touch with us.