There’s a lot of buzz (and almost urgency) around finding the perfect one-stop- shop for MTD IT work. This places a lot of unnecessary pressure on accountants, especially since the new tax year has kicked off.
But… What if you didn’t need to put all of your eggs in one basket? Or better yet, what if you didn’t need to get a new system at all? While MTD IT means more submissions and more chasing throughout the year, it shouldn’t mean more software subscriptions
Debunking the MTD IT single platform myth
Who wants to force all of their clients over to a brand-new system? Moving your clients’ data over to an exclusive MTD IT platform isn’t just daunting, it isn’t the most productive approach either.
Think about it, MTD IT is one of the biggest changes that’s come to the industry in years. At this stage, your current software providers should’ve implemented it into their systems that you’re already using. Not only that, but they should also integrate it with other products so your flow of work each quarter is seamless from start to finish.
Once this is in place, you don’t have to double and triple check that each client’s address or NI number matches to the next system you use. It’ll just automatically be there.
This means you can just simply continue to use what you’re using, minus the hassle of transferring everything over to a new platform.
Using your current system supports client preferences
Sure, you don’t have the hassle of moving to another system, but neither do your clients. Just think about the downtime involved to migrate your client list over to a new platform too. If you continue using the software they’re used to, you’re accommodating their preferences while maintaining compliance.
This means that neither of you have to sit down and learn how to use a new software. It also means a much less bumpy road for your first year of submitting MTD IT work.
Reducing operational risk
When you’re using systems that you already have in place for MTD IT, it doesn’t just mean happier clients. It also means less errors and delays.
It’s like baking a cake using a recipe you trust and with tools you already have. If you had to use a new mixer, a new oven, or new ingredients, you run the risk burning or spoiling the cake. By sticking to what you know works, you’ve got a fool-proof process that bakes the perfect cake every time.
All you have to do is add a few more steps to your workflow on your existing system and you’re confident that your team, clients and firm have got it covered.
No need for the great migration
Just because some people are shouting from the rooftops about this new MTD IT system, doesn’t mean you have to jump on the bandwagon.
There’s no need to take any drastic moves, like migrating all of your data into a flashy fad app that will likely fizzle out as quickly as it came in.
If you’ve got a system that’s already added MTD IT into its core offering, why change? You’ve got the data, the workflow, and the familiarity of using the system.
And here at Bright, we offer this exact solution.
How Bright has adapted its software for MTD IT
Here at Bright, we’ve implemented MTD IT across a number of our systems, including:
1. BrightCapture: AI data capturing tool for MTD IT
BrightCapture is an add-on to BrightBooks that scans and handles quarterly receipts and invoices for MTD IT. It does this by:
- The client taking a photo
- Sending it across to a dedicated email address
- Automatically organising into batches by client (so you don’t need to spend hours manually sort them)
- AI reads different invoice formats and layouts, and extracts supplier details, dates, amounts, and line items.
- Calculates and shows the VAT breakdown across standard rate, reduced rate, and zero rate
- If adjustments are needed, they can be edited or removed, with instant recalculation
- Once done, click publish to send to BrightBooks
Please note that everything published goes into an archive, creating a digital audit trail that supports MTD IT compliance requirements.
2. BrightBooks: Seamlessly generate quarterly MTD IT returns
In our cloud bookkeeping software, BrightBooks, all details are populated automatically from BrightCapture, including VAT splits and nominal codes. All you need to do is review the coding and complete the posting to the ledger.
It connects directly to HMRC to pull in relevant client data, which you can find under the “MTD ITSA” tab in the general ledger. Then, it instantly generates quarterly returns based on your accurate bookkeeping records, which you can then submit with a quick legal declaration.
3. BrightTax: Submitting the final declaration
Our cloud accounts production and tax software, BrightTax, simplifies final declarations by:
- Checking a client’s Making Tax Digital eligibility
- Signing into HMRC to pull in client data securely (including self-employment and property details)
- Review income using a built-in calculator
- The software calculates the return
- Generate a detailed report for your client to approve
- BrightTax compares its calculation with HMRC figures
- Once approved, submit the return
4. BrightManager: Supporting your MTD IT workflow
Our cloud practice management software for accountants, BrightManager, supports MTD IT by offering new MTD quarterly filing and final declaration options in the system. You can find these under global settings. These then generates tasks based on the dates set, keeping the practice organised and on track.
Here’s how to do this:
- Go to the client list and set MTD qualifying years for UK Self Assessment clients
- Within a client file, you can set the next due date for quarterly filing and final declaration due date
- Updating these fields then generate tasks automatically based on the selected dates
- There are MTD Quarterly filing preparing and submission workflow templates, and MTD final declaration preparation and submission workflow templates
- These are fully customisable, and preparation tasks can be toggled on or off, so tasks can be created just for submission where required
- Our Letter of Engagement templates also include MTD IT where relevant
MTD IT doesn’t have to be complicated
MTD IT work shouldn’t be completed in just one solution or fad product. It should be built within your existing systems, so you can conduct MTD IT work this tax year without a huge learning curve slapped on top of it.
If you’d like to revolutionise how your firm approaches MTD IT, book a slot with our team today.
