Making Tax Digital: What Northern Ireland Businesses Need to Do Now

HMRC’s Making Tax Digital (MTD) for Income Tax is coming — and it will affect thousands of people in Northern Ireland. From April 2026, sole traders, landlords, and certain partnerships with turnover above the threshold will have to keep digital records and send quarterly updates to HMRC using approved software.

While April 2026 may sound like it’s still a long way off, preparing early is key. Leaving it too late could mean extra stress, unnecessary costs, and missed opportunities to make the transition work for you.

Who will be affected?

• Sole traders with business turnover over £50,000.

• Landlords with rental income over £50,000.

• From April 2027, the threshold drops to £30,000, meaning even more people in NI will be included.

• Partnerships and companies will follow in later phases.

What MTD means in practice

Instead of one annual tax return, you’ll need to:

1. Keep digital records of income and expenses.

2. Submit quarterly updates to HMRC using MTD-compliant software.

3. Provide an End of Period Statement (EOPS) and a Final Declaration each year.

This means more regular reporting, but also more up-to-date insights into your business finances — if you set it up properly.

Steps to take now

1. Check if you fall within the new rules
   Review your turnover from self-employment or rental income. If it’s over £50,000, you’ll be in the first wave in April 2026.

2. Review your current record-keeping system
   Are you still relying on spreadsheets or paper records? You’ll need to move to MTD-compatible software.

3. Choose the right digital solution
   Not all software suits every business. At Exchange, we help clients pick systems that are simple, cost-effective, and tailored to their needs.

4. Get used to quarterly reporting now
   Even before MTD becomes mandatory, we recommend trialling quarterly submissions. This reduces the learning curve and highlights potential issues early.

5. Seek professional guidance
   An accountant can ensure your systems are compliant, efficient, and working to your advantage.

Why early preparation matters

For many in Northern Ireland, MTD is not just a compliance issue — it’s a chance to modernise financial systems, save time, and gain better control over cashflow. But if you leave it until 2026, you risk scrambling to get ready.

Book a consultation with Exchange Accountants today to check your MTD readiness and make sure your business is prepared well ahead of the deadline.