A major change is on the horizon for UK taxpayers. From 6 April 2026, sole traders and landlords with annual income above £50,000 will be required to comply with Making Tax Digital for Income Tax (MTD for IT) — a key milestone in HMRC’s ongoing digital transformation.
At BM Connect, we’re here to help you navigate this shift with the right digital tools, expert support, and a proactive plan to ensure compliance and efficiency.
What Is Making Tax Digital for Income Tax?
MTD for IT is HMRC’s initiative to modernise the tax system and reduce errors by mandating digital record-keeping and quarterly reporting.
If you’re affected, you’ll need to:
- Use MTD-compliant software to keep records digitally
- Submit quarterly updates to HMRC
- Submit a final declaration at year-end
This replaces the traditional annual Self Assessment tax return and aims to make tax administration more efficient and accurate.
Who Will Be Affected?
From April 2026:
- Sole traders and landlords with gross income over £50,000 must comply
From April 2027:
- The threshold lowers to £30,000, capturing more small businesses and property owners
If your total income from self-employment and/or property rental exceeds these limits, now is the time to start preparing.
Why Digital Records Matter More Than Ever
According to HMRC, MTD for IT will make it easier for taxpayers to stay on top of their obligations by:
- Spreading admin across the year with quarterly updates
- Reducing mistakes and penalties with automated records
- Helping you stay informed with real-time data
For busy business owners and landlords, that means less last-minute stress — and better financial oversight year-round.
Why Prepare Now?
With less than a year to go, it’s crucial to start adapting. HMRC is encouraging early adoption through its MTD testing programme, giving participants time to get familiar with the new process and access tailored support.
Here’s why it pays to act early:
- Set up and learn new digital tools without pressure
- Work with experts to ensure your data is accurate
- Adjust internal workflows ahead of time
- Avoid penalties for non-compliance later
How BM Connect Can Help
BM Connect specialises in digital accounting, payroll, and software integration — and we’re already helping clients prepare for MTD for IT.
Our services include:
- MTD-compliant software setup and training
- Quarterly reporting support
- Real-time dashboards for income and tax visibility
- Cloud bookkeeping to simplify record-keeping
- Ongoing advisory and troubleshooting
We’re a Xero Gold Partner and work with the full ecosystem of digital tools including Dext, Fathom, ApprovalMax, Pleo, GoCardless, and others — so your system is seamless and scalable.
Your MTD Action Plan
If you’re a sole trader or landlord earning over £50,000, here’s how to get ready:
1. Confirm if You’re in Scope
Check if your total gross income from self-employment and/or property exceeds the £50,000 threshold for 2026.
2. Get the Right Software in Place
We’ll help you select and implement MTD-compliant software tailored to your business.
3. Automate Your Record Keeping
Start capturing your income and expenses digitally now to make the transition easy later.
4. Join the HMRC Pilot
Consider signing up for the MTD testing programme to get ahead with extra support.
5. Work with Digital Accounting Experts
Our team will guide you through the process, ensuring you’re compliant, efficient, and informed.
The Cost of Waiting
Delaying your MTD preparations can lead to:
- Penalties for non-compliance
- Lost time trying to learn systems under pressure
- Errors that can trigger HMRC inquiries
- Unnecessary stress during filing season
The good news? With BM Connect on your side, the transition doesn’t need to be difficult.
Get Connect. Stay Compliant.
MTD for Income Tax is the most significant change to the UK tax system in over two decades. If you’re a sole trader or landlord earning over £50,000, don’t wait until the last minute.
Let BM Connect handle the technical side, so you can focus on what you do best — growing your business. Contact us today to speak with a digital accounting specialist.
Read the HMRC Press Release.
