For sole traders and landlords across Northern Ireland, a significant change is on the horizon. HMRC’s Making Tax Digital (MTD) initiative is set to transform how you manage your tax affairs, moving from a paper-based system to a streamlined, digital process. At Errigal Accountants, we’re here to guide you through these changes, ensuring a seamless transition and helping you unlock the benefits of digital accounting.

What Is Making Tax Digital (MTD)? 📈

MTD is a government initiative designed to modernize the UK’s tax system, making it more efficient, accurate, and easier to manage for everyone. It requires businesses, self-employed individuals, and landlords to keep digital records of their income and expenses and to submit updates to HMRC using MTD-compatible software.

The program has already been in place for many VAT-registered businesses since 2019. Now, MTD for Income Tax Self Assessment (ITSA) is set to roll out in phases. This means the days of a single, annual tax return are coming to an end for many.

Key Dates for Northern Ireland Businesses 🗓️

The phased rollout for MTD for Income Tax applies to Northern Ireland in the same way it does to the rest of the UK. Here are the crucial dates you need to know:

• From April 2026: If your gross annual income from self-employment and/or property is over £50,000, you’ll be required to comply with MTD for ITSA.
• From April 2027: The threshold will be lowered to include those with a gross annual income of over £30,000.
• From April 2028: The threshold will be lowered once again to include those with a gross annual income of over £20,000.

This means you’ll need to make quarterly submissions of your income and expenses, followed by an end-of-year final declaration.

How Errigal Accountants Can Help You Navigate MTD 🤝

While this transition may seem daunting, it’s also a great opportunity to get a clearer, real-time view of your business’s financial health. At Errigal Accountants, we specialize in providing tailored, expert advice to Northern Ireland businesses.

We can assist you by:

• Switching to MTD-compliant software: We’ll help you choose and set up the right software for your needs, whether you’re a sole trader, landlord, or a small business.
• Simplifying your digital record-keeping: Our team will ensure you’re keeping the necessary digital records correctly, from invoices and receipts to bank transactions.
• Managing your quarterly submissions: We’ll handle the submission of your quarterly updates to HMRC, so you can focus on running your business without the stress of deadlines.
• Completing your end-of-year tasks: We’ll finalize your tax position and submit the required declaration, ensuring everything is accurate and compliant.

Don’t wait until the last minute. By preparing now, you can turn a mandatory change into a valuable asset for your business. Contact Errigal Accountants today for a free consultation and let us help you get MTD-ready.