Capium has historically categorised clients, and why this structure needs to be reviewed in light of the changes introduced by HMRC's Making Tax Digital for Income Tax (MTD IT) requirements.
Historically, Capium has supported two types of clients:
- Sole Trader — A Sole Trader client in Capium has traditionally had access to Bookkeeping, Payroll, Accounts Production, and Self Assessment modules.
- Individual — An Individual client in Capium has traditionally had access to the Self Assessment module only.
These two client types have operated independently within the system. However, with the introduction of MTD IT, HMRC now requires all income tax submissions to be made at the Individual level.
What this means under MTD IT:
- HMRC treats the Individual as the ultimate tax authority — all quarterly and annual submissions must originate from an Individual record.
- A Sole Trader business is no longer treated as a standalone filing entity. Instead, it is considered a source of income belonging to an Individual.
- Where a client operates multiple sole trader businesses, each Sole Trader record must be linked to the same Individual. All submissions are then made from that single Individual record in the MTD IT module.