Making Tax Digital
If you have a VAT registered business, you are now required to keep digital records and file your tax returns using compatible software.
You need to follow the requirements for Making Tax Digital for Income Tax if you are self-employed or a landlord from:
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6 April 2026 if you have an annual business or property income of more than £50,000
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April 2027 if you have an annual business or property income of more than £30,000
Making Tax Digital for Sole Traders
...and how it works
The way sole traders report their income to HMRC is changing. Under the Making Tax Digital (MTD) initiative, many self-employed individuals will be required to keep digital records and submit updates to HMRC using compatible software.
At RGA Accountants Ltd, we help sole traders across Banbridge, Portadown, Lurgan and throughout Northern Ireland prepare for Making Tax Digital with confidence. As experienced Chartered Accountants in Northern Ireland and Xero Certified Advisors, we can help you understand your obligations, choose the right software, and ensure you remain compliant with HMRC requirements.
Making Tax Digital for Sole Traders
If you are a sole trader and would like advice on Making Tax Digital, cloud accounting, or digital bookkeeping requirements, contact RGA Accountants Ltd today.
Our team of Chartered Accountants in Northern Ireland is ready to help businesses across Banbridge, Portadown, Lurgan and beyond prepare for the future of digital tax reporting
What is Making Tax Digital?
Making Tax Digital is HMRC's programme to modernise the UK tax system. The aim is to make tax administration more efficient, reduce errors, and encourage businesses and individuals to maintain digital records.
Under MTD for Income Tax, eligible sole traders will be required to:
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Keep digital business records
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Use HMRC-compatible software
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Submit quarterly updates to HMRC
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Complete an annual declaration of income
For many sole traders, this represents a significant change from the traditional annual Self Assessment tax return process.
How RGA Accountants Can Help
At RGA Accountants Ltd, we provide practical support to help sole traders transition smoothly to digital record keeping and reporting.
Our services include:
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Making Tax Digital advice and planning
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Cloud accounting software setup
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Xero implementation and training
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Digital bookkeeping support
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Quarterly reporting assistance
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Self Assessment and tax planning
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Ongoing accountancy support
Whether you currently maintain paper records, spreadsheets, or accounting software, we can help you adopt a system that works for your business and meets HMRC requirements
Who Will Be Affected?
Making Tax Digital (MTD) for Income Tax will affect many self-employed individuals and sole traders across Northern Ireland. The changes are being introduced by HMRC to modernise the tax system and require businesses to maintain digital records and submit tax information electronically throughout the year.
From April 2026, sole traders and landlords with qualifying income over £50,000 will be required to comply with Making Tax Digital for Income Tax. From April 2027, the threshold will reduce to £30,000, bringing many more individuals and small businesses into the MTD regime.
Our team can review your current bookkeeping processes and advise whether you are likely to fall within the scope of MTD requirements.
Cloud Accounting Solutions
As Xero Accredited Partners with Xero Certified Advisors, we help sole traders take advantage of cloud accounting technology.
Cloud accounting software allows you to:
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Access your accounts from anywhere
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Record income and expenses digitally
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Connect bank accounts automatically
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Monitor business performance in real time
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Simplify tax reporting
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Prepare for Making Tax Digital compliance
Using the right software can significantly reduce administration time and improve the accuracy of your financial records.
Our Solution for MTD
At RGA Accountants Ltd, we do not believe in a "one size fits all" approach to bookkeeping and Making Tax Digital compliance. Every business is different, and the software solution that works perfectly for one business may not be the best fit for another.
Unlike many accountancy firms that promote a single software package, we are proud to be one of the few Chartered Accountants in Northern Ireland able to offer advice and support across a range of leading cloud accounting platforms. This allows us to recommend the solution that best suits your business, your industry, your level of bookkeeping experience, and your budget.
Whether you are a sole trader looking for a simple and cost-effective solution, a landlord preparing for Making Tax Digital, or a growing business requiring more advanced reporting and automation, we can help you select and implement the right software for your needs.
Our experienced team can provide setup, migration, training, and ongoing support for a range of HMRC-recognised accounting systems, including:
• Xero
• Sage Accounting
• QuickBooks
• GCR
• Other cloud-based bookkeeping solutions
As trusted Accountants in Banbridge serving clients throughout Portadown, Lurgan and across Northern Ireland, our focus is on finding the right solution for your business rather than fitting your business around a particular software package.
By taking the time to understand how your business operates, we can recommend a bookkeeping system that improves efficiency, supports compliance with Making Tax Digital, and provides valuable financial insights to help your business grow.
Book My Free Consultation
At RGA Accountants Ltd, we offer a free, no-obligation consultation to discuss your business, understand your goals, and identify how we can support you.
As trusted Accountants in Banbridge, serving clients across Portadown, Lurgan and Northern Ireland, we believe in providing clear pricing with no hidden surprises, ensuring you receive the support and services that are right for your business.