Everything you need to get started with making tax digital (MTD), including the changes you need to prepare for.

Stay in control of your tax obligations with everything you need to meet Making Tax Digital (MTD) requirements. 

Whether you are a sole trader or landlord BSMART provides the tools and support to help you prepare confidently. 

BSMART is trusted by thousands of individuals and small businesses for accurate record keeping, reliable digital submissions, and stress free Self Assessment support. 

• Fully MTD compatible
• HMRC recognised software partnerships
• Expert help from qualified advisors 

What Is Making Tax Digital ?

Making Tax Digital is HMRC’s programme to modernise and digitise the tax system for Income Tax Self Assessment. The goal is to make tax reporting easier, more accurate, and more efficient.  Instead of using paper records or spreadsheets, you will keep digital records and submit information to HMRC using approved software. 

What Is MTD for Income Tax?

MTD for Income Tax is the next major stage of HMRC’s digital rollout. 

From 6 April 2026, anyone earning over £50,000 from self employment or property will need to use MTD compatible software to: 

• Keep digital records 

• Send quarterly summaries of income and expenses to HMRC 

• Complete their final end of year declaration through approved software 

From 6 April 2027, the same rules will apply to people earning over £30,000. 

A further rollout for individuals earning over £20,000 is planned from 2028. 

How MTD Changes Income Tax Reporting ?

Here are the three main changes you need to prepare for: 

Digital Record Keeping 

All income and expenses must be stored digitally using MTD compatible software. 

Quarterly Submissions to HMRC 

Every three months you will submit a summary of your income and expenses online. 

A Final Declaration Each Tax Year 

At the end of the year you will review your figures, make final adjustments, and confirm your full tax position through your software.
HMRC will then confirm the tax owed, due by 31 January as usual. 

Video Guides to Making Tax Digital 

BSMART provides clear, easy guides that show you: 

• How to keep digital records 

• How to submit quarterly updates 

• How to complete your final declaration 

• How to stay compliant and avoid penalties 

These guides make the transition simple, even if you have never used digital tools before. 

How MTD for Income Tax Can Help You 

MTD does more than meet HMRC requirements. It can also improve your financial management. 

Save Time on Admin 

Digital software brings everything together, automates tasks, and simplifies record keeping. 

Improve Accuracy 

Real time digital records help reduce mistakes and give you a clearer financial picture. 

Greater Data Security 

You benefit from secure storage, encryption, and multi factor authentication. 

Better Collaboration With Your Accountant 

Instant information sharing makes working with accountants and bookkeepers far easier. 

What MTD for Income Tax Means for You 

Start preparing now so you are ready when HMRC requires you to join. 

For Sole Traders and Landlords 

If your income is over £50,000 you will need to begin using MTD compatible software by April 2026. 

If your income is over £30,000 you will join in April 2027. 

With BSMART you can: 

• Store digital records securely 

• Submit MTD quarterly updates with confidence 

• Track income and expenses in one place 

• Stay compliant with all HMRC rules 

• Access help if you are unsure about thresholds or deadlines 

 

Get MTD Ready With BSMART 

Whether you are preparing early, managing multiple sources of income, or unsure where to start, BSMART provides the guidance and tools you need to stay compliant from record keeping to final submission. 

Start preparing for Making Tax Digital today. 

 

Useful HMRC Link 

Check your eligibility using HMRC’s official tool:
https://www.gov.uk/guidance/check-if-youre-eligible-for-making-tax-digital-for-income-tax