Sole traders and landlords across the Fermanagh and Omagh area with an income above £50,000 will be required to use Making Tax Digital (MTD) for Income Tax from 6 April 2026.
Making Tax Digital for Income Tax is part of HM Revenue & Customs’ wider move to modernise the tax system. The new requirement means eligible individuals must keep digital records of their income and expenses and submit regular updates using compatible software.
Preparing now can help ensure a smooth transition and avoid disruption to your business operations.
What Making Tax Digital for Income Tax means for your business
Making Tax Digital for Income Tax will change how sole traders and landlords record and report their financial information to HMRC.
Digital record keeping
Businesses will need to maintain digital records throughout the year using MTD-compatible software. This removes the need to gather paperwork at the end of the tax year and can make managing finances more efficient and organised.
For many local businesses in Omagh and across the district, digital record keeping can also provide better visibility of income, expenses and overall financial performance.
Quarterly reporting
Instead of submitting one annual return, eligible individuals will provide quarterly summaries of income and expenses to HMRC.
This spreads the workload more evenly throughout the year and reduces the pressure of last-minute tax preparation. It also helps businesses stay informed about their tax position and cash flow in real time.
Who needs to use Making Tax Digital for Income Tax
Making Tax Digital for Income Tax will be introduced in stages:
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From April 2026: Sole traders and landlords with qualifying income over £50,000 must comply
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From April 2027: The threshold will reduce to £30,000
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From April 2028: The threshold will reduce further to £20,000
Qualifying income refers to total income from self-employment and property before any expenses or allowances are deducted.
Why this matters for Omagh’s business community
For sole traders, freelancers and landlords across Omagh and the wider Fermanagh and Omagh District Council area, this change represents an important step towards fully digital financial management.
While the transition will require businesses to adopt new systems, it also offers benefits such as improved financial organisation, reduced administrative pressure at year-end, and greater clarity over business performance.
Businesses are encouraged to review their current record-keeping processes and explore MTD-compatible software in advance of the April 2026 deadline to ensure they are ready for the change.
Find out if and when you need to use Making Tax Digital for Income Tax.
Webinars to help with Making Tax Digital for Income Tax
HMRC is hosting several webinars to help people understand their obligations for Making Tax Digital for Income Tax as the new changes are introduced in April 2026.
View the latest HMRC tax webinars.
Other support to help you prepare for MTD
HMRC is providing a range of free support to help people prepare, including:
Free software options for MTD
Free software options are available, and once income and expenses are recorded, the software generates a simple summary to send to HMRC.
At the end of a tax year, those within MTD for Income Tax will still need to file a tax return by the following 31 January – but the software will already hold the information from the quarterly updates, meaning no last-minute hunt for records or receipts.
Exemptions from MTD
Those who genuinely cannot use digital tools can apply for an exemption from Making Tax Digital.
Find out if you can get an exemption from Making Tax Digital for Income Tax
