BTCSoftware has widened its customer pool by introducing a small business version of its Making Tax Digital bridging software.
Marketed separately from the BTCHub MTD solution for practitioners, the MTDfVAT tool has delivered new small business customers and attracted interest from larger accountancy firms looking for a tool that will help them support clients that file their own VAT returns under MTD.
“What’s happened with MTD for VAT is the audience changed, so we created an entirely different entity and product,” said BTCSoftware’s business development director Paul Oldridge.
The new program is also going down well with big firms like RSM and Francis Clark, who are recommending it to their small business clients. Agents want to use the same submission engine so they can see client data in the BTCHub, he added.
Derived from main BTCSoftware product, the MTDfVAT bridging tool is designed to handle any spreadsheet-based VAT report. As well as providing a low cost compliance route for small business, it also makes it easier for practices to support DIY filers and connects to the BTCHub so they can manage all their VAT clients in one place, Oldridge said.
Sage 50 market
One of the areas where the new system has prospered is among Sage 50 users, many of whom use the desktop accounting engine alongside specialist add-ons. Sage has informed customers that they must upgrade to the latest edition of Sage 50cloud to file under MTD.
“A lot of users don’t want to switch and developers don’t want to rewrite their code, so they can take MTDfVAT and use the BTCHub to plug into HMRC and clients only pay a small amount more,” Oldridge explained.
For practitioners, the BTCHub acts as a central client list for different MTD submission mechanisms and gives larger firms the flexible control they need over client data access. “They can tailor this through the practice management side of BTCSoftware at headquarters to control what agents see,” said Oldridge.
The BTCHub was conceived as a platform for the new online approach to taxation and will evolve into MTD for Business if and when individual tax reports are brought into the new online filing mechanism, according to Oldridge.
“It would be nice if company directors knew what information HMRC held on them. We’ll enhance it if and when MTD for income tax comes into play,” he said.
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About John Stokdyk
AccountingWEB’s Head of Insight has been with the site since 1999 and likes to spend his time studying accountants’ technology habits. When not nerding out, you can find him exploring obscure indie music and searching for the perfect organic sourdough loaf from his base in Brighton, UK.