Everything you need to know on new tax rules for 27,000 people in Northern Ireland

Need to know

It marks the biggest change to the Self Assessment system since 1997

Everything you need to know with just weeks to prepare for new tax rules for 27,000 people in Northern Ireland.

1. From next month, thousands of sole traders and landlords in Northern Ireland must use Making Tax Digital (MTD) software
2. It marks the biggest change to Self Assessment system since 1997
3. The 27,000 sole traders and landlords in Northern Ireland with a turnover of more than £50,000 from self-employment and property have just weeks left to prepare for MTD for Income Tax.
4. From 6 April 2026, those with income above the threshold must use compatible software to keep digital records, send four simple quarterly updates of their income and expenses and submit their tax return to HM Revenue and Customs (HMRC).
5. New statistics released by HMRC show an estimated 20,000 sole traders in Northern Ireland and a further 1,000 landlords will be required to use MTD for the 2026 to 2027 tax year. Another 6,000 are both sole traders and landlords.
6. Most customers will receive a letter from HMRC confirming they need to join, which also explains what they need to do and includes a QR code linking to GOV.UK guidance.
7. Craig Ogilvie, HMRC’s Director of Making Tax Digital, said: “MTD for Income Tax is a generational change and support is there for everyone who needs it. The quarterly updates aren’t tax returns – they’re simple summaries your software auto-populates, spreading the admin throughout the year, rather than leaving it all towards the January Self Assessment deadline.”
8. About 100,000 sole traders and landlords have already signed up for MTD for Income Tax, with more than 15,000 quarterly updates successfully submitted through a voluntary testing programme.
9. For most, the first quarterly update under MTD for Income Tax will cover the period from April 6 to July 5 2026 and will need to be submitted by August 7 2026.
10. A new points-based system for late submissions applies, where a £200 fine is only triggered once four points are reached, meaning the occasional slip-up will not result in an immediate fine.
11. No penalty points will be issued for late quarterly updates for the 2026 to 2027 tax year – though points will still apply to late tax returns.
12. Free software options are available, with a range of paid packages also on offer to suit different needs. Once all your digital records of income and expenses have been created, the software will use them to generate your quarterly update.
13. Those joining MTD for Income Tax in April 2026 will still file their Self Assessment return for the 2025 to 2026 tax year in the usual way by 31 January 2027. The first tax return that most customers will submit using their MTD compatible software, covering 2026 to 2027, will be due by 31 January 2028.
14. People with a tax agent should speak to them about preparing. HMRC’s research shows awareness among the agent community is 99.6% and agents represent around two-thirds of the customers in scope for MTD for 2026 to 2027.
15. HMRC is urging anyone else in scope of MTD for Income Tax to act now: read the guidance, choose software and sign up on GOV.UK. Those who genuinely cannot use digital tools can apply for an exemption.

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