This article explains how to choose the correct workflow for your clients within the MTD IT module in Capium. There are four available workflows, and selecting the right one depends on where your client's records are kept.

Choosing a workflow also determines the client setup required: whether the client can be added as an Individual on their own, or whether a Sole Trader business record needs to be created and linked to an Individual first. Getting this decision right at the outset avoids having to re-link clients or move records later.

This guide covers the four workflows, the Golden Rule for choosing between them, how the legacy Self Assessment client types map onto MTD IT, workflow eligibility for clients already set up in Capium, and how to work through the decision when registering a brand new client.




The Four MTD IT Workflows

Workflow 1 (Bridging)Workflow 1 clients whose records are not managed in Capium at all, for example a client who keeps their own spreadsheet or uses third party software. Figures are completed outside the system, and re-uploaded for submission. 

This workflow uses the Individual client type directly; no Sole Trader business record is created or linked. It supports self-employment, UK property, and overseas property income, making it suitable for sole traders and landlords alike, provided none of them require VAT, CIS, accrual basis accounting, or payroll. 
Workflow 2 (Capium 365) Capium 365 is the most automated of the four. Records are kept and categorised directly in the Capium 365, these also allows accountants and clients to do the recordkeeping for multiple sources of income for the individual. and transactions publish through to the MTD IT module without manual re-entry.

Like Workflow 1, it uses the Individual client type directly, with no Sole Trader record involved. It suits sole traders who are not VAT registered and do not require accrual accounting or payroll, as well as UK and overseas landlords who do not need foreign currency conversion. 
Workflow 3 (Capium 365 with Bookkeeping) Workflow 3 suits sole traders who need VAT or CIS returns, accrual basis accounting, sole trader accounts production, or payroll. Transactions are reconciled within Capium 365 in the same way as a for the sole trader as an entity, then published into the Bookkeeping module, from where they are imported into MTD IT for quarterly submission. 

This workflow requires a Sole Trader business record to exist and be linked to an Individual, since the individual is always the filing entity. It is not available for landlord income. 
Workflow 4 (Bookkeeping Only)  Workflow 4 is the most common workflow for existing Capium customers who were using the Bookkeeping module for sole trader clients before MTD IT was introduced. Records continue to be maintained in Bookkeeping exactly as before, with no change to day-to-day bookkeeping. When a quarterly submission is due, the accountant imports the relevant transactions directly from Bookkeeping into the MTD IT module. As with Workflow 3, this requires a Sole Trader business record linked to an Individual, and is not available for landlord income. 


Important Note:

Workflows 3 and 4 are only available for self-employment income. Landlords, whether UK or overseas, cannot use Workflow 3 or 4 under any circumstance, regardless of whether they need VAT, CIS, or any other service. Landlord income must always go through Workflow 1 or Workflow 2.

To choose between these workflows there is a simple golden rule.


The Golden Rule

The right workflow always depends on where records are kept, not just the compliance needs. 

If a client already has an established way of keeping records, use the table and move on. The two sections below handle the difficult cases or new client registrations.


Setting Up a New Client From Scratch

Here, you're also choosing where records will live. VAT, CIS and payroll needs don't change the Golden Rule, but they're useful prompts:

  • Does the client need VAT or CIS returns?
  • Does the client run payroll?
  • Does the client require annual accounts?


Yes to any → Bookkeeping is generally the better starting point, pointing to Workflow 3 or 4.

No to all → a simpler setup usually suffices, consider Workflow 1 or 2.


Existing Clients Set Up
If you have been using Capium prior to the MTD IT module, and did submissions on the system before, you will see that your clients for Self Assessments would be split into Self Employed and Individuals.

Individual clients don't have access to Bookkeeping. A Workflow 3/4 recommendation becomes Workflow 2 for them.



Existing Capium Clients

If you were using the Capium Self Assessment module you had two client types that we historically supported:
Sole Traders: Bookkeeping, Payroll, Accounts Production and Self Assessment Access. 

Individual Clients: Only has access to Self Assessment Module.

As per the current system accountants use individuals for directors (when declaring dividends) and sole traders was used for self employed businesses and also had the flexibility to add payroll and accounts to this package.

However in the new world these workflows have been transformed. The Individual us is the entity that does the tax submissions, and you can retain the records under the sole trader (as a business). This step is


Sole Trader Clients: all four workflows available, Payroll/Accounts Production run independently of Bookkeeping, so the deciding factor stays the recordkeeping location.

Clients with Multiple Income Streams / Next Steps: unchanged from before.


A couple of judgement calls I made that are worth flagging:


I treated "annual accounts" the same as VAT/CIS/payroll as a soft nudge toward Workflow 3/4, since it was in the original article's question list and follows the same logic. Flag it if Accounts Production should behave differently here.

I used plain-text indented flow for the flowchart rather than an image or diagram tool, since this is going straight into a Freshdesk markdown body. Want this as an actual visual diagram instead, for example something built and embedded as an image?


Existing Capium Clients

If you used the Self Assessment module before MTD IT, it's worth understanding how that older client structure maps onto the new one, since it explains why the workflow options differ by client type.

Under Self Assessment, there were two client types:

  • Individual: Self Assessment access only. Used for directors declaring dividends, and also for simpler Sole Traders whose figures were entered directly onto the SA100 without needing separate Bookkeeping, Payroll or Accounts Production records.
  • Sole Trader: Full access to Bookkeeping, Payroll, Accounts Production and Self Assessment. Used where the business needed that fuller infrastructure.

Under MTD IT, the Individual is always the entity that submits to HMRC. This changes how the two client types are used:

  • A simple Sole Trader case can remain set up as an Individual client. No linking is required, and the accountant can choose Workflow 1 or 2 for them.
  • A Sole Trader needing fuller business infrastructure is set up as a Sole Trader business record, linked to an Individual for submissions. This gives access to all four workflows.



Overview

This article explains how to choose the correct workflow for your clients within the MTD IT module in Capium. There are four available workflows, and selecting the right one depends on your client's income type and the services they require. This guide will walk you through the decision flowchart and explain each workflow so that you can make the most appropriate choice for each client.


The Four MTD IT Workflows

Capium supports four workflows within the MTD IT module:

  1. Bridging Workflow - Suitable for clients where data is managed outside of Capium and submitted via a bridging solution.
  2. Capium 365 Workflow - Uses the Capium 365 Client Portal to collect and manage client data.
  3. Capium 365 with Bookkeeping Workflow - Combines the Capium 365 Client Portal with the Bookkeeping module for a more integrated approach.
  4. Bookkeeping Only Workflow - Uses the Bookkeeping module in Capium as the sole source of data for MTD IT submissions.

Each workflow has its own set of advantages and considerations. You should review these carefully before assigning a workflow to a client.


Using the Decision Flowchart

The decision flowchart is designed to help you identify which workflow is best suited for each client. Each income type has its own set of questions that you must work through in order to arrive at the correct workflow.


Important: If your client has more than one source of income, for example a sole trader who also has landlord income, you must follow the decision flowchart for each income type separately before making your final decision.


For Sole Trader clients, work through the following questions:

  1. Does your client require annual accounts?
  2. Does your client require VAT or CIS returns?
  3. Does your client run payroll?

If the answer to any of the above questions is yes, you must use Workflow 3 (Capium 365 with Bookkeeping) or Workflow 4 (Bookkeeping Only).

If the answer to all of the above questions is no, you may proceed with Workflow 1 (Bridging) or 


Clients with Multiple Income Streams

If your client has multiple income streams, you do not need to use the same workflow for every stream. You can support different workflows for different income types simultaneously. For example, you may use the Bookkeeping workflow for a client's sole trader income and the Capium 365 workflow for their landlord income.


The recommendation is to choose the workflow that is most consistent across your client base. This makes record keeping more straightforward for your practice and makes it easier for your clients to track their earnings and expenses.


Next Steps

Once you have selected the appropriate workflow for your client, dedicated articles and video guides are available for each workflow, covering the full end-to-end journey including setup and features. Please scroll to the bottom of this article to access the relevant workflow guides.