Apr 6

2026

Making Tax Digital: What UK and Irish Businesses Need to Know and Do Now

If you run a business in the UK, Northern Ireland or Ireland, tax reporting is becoming more digital, more connected and less forgiving of messy records. In the UK, Making Tax Digital, usually called MTD, is already part of VAT compliance and is now moving into Income Tax. 

In Ireland, the regime is different, but the direction is still clear: Revenue is pushing further into digital filing, VAT modernisation and structured eInvoicing. If your records are spread across spreadsheets, paper files and disconnected systems, now is the time to fix that. 

For businesses operating across the UK and Ireland, the challenge is not just filing on time. It is understanding which rules apply, which software you need, and how to build a process that works across more than 1 tax authority. 

That is where joined-up support from SCC Chartered Accountants, including Cross-Border Accounting & Tax, can make a real difference. SCC positions itself as a dual-skilled team working across the UK and Ireland, which is exactly the kind of practical setup many cross-border businesses need.

What Making Tax Digital means in the UK

In the UK, MTD means keeping certain tax records digitally and sending returns or updates to HMRC through compatible software. For VAT, this already applies to all VAT-registered businesses. HMRC says VAT-registered businesses should keep VAT records digitally and submit VAT Returns using compatible software. 

That requirement is not limited by turnover once you are VAT-registered. Separately, the UK VAT registration threshold increased from £85,000 to £90,000 from 1 April 2024, which matters if you are deciding whether you need to register for VAT in the first place. 

The next big development is MTD for Income Tax. HMRC’s current timetable says that if your qualifying income is more than £50,000 in the 2024 to 2025 tax year, you must start from 6 April 2026. If it is more than £30,000 in the 2025 to 2026 tax year, you start from 6 April 2027. 

If it is more than £20,000 in the 2026 to 2027 tax year, you start from 6 April 2028. This applies to sole traders and landlords, so many business owners who have been focused only on VAT need to look again at their position now. 

If you are unsure whether your current setup is ready, a review of your Tax Compliance processes and Digital Bookkeeping systems is a sensible place to start. HMRC also provides tools to check whether your software is compatible with MTD for VAT and MTD for Income Tax.

What businesses in Ireland need to know

Ireland does not currently use the UK’s MTD system, so it is important not to treat the 2 countries as if they have identical rules. However, Irish tax compliance is already digital in key areas. Revenue says VAT returns are filed through the Revenue Online Service, and the standard deadline is the 19th day of the month following the end of the taxable period, extended to the 23rd day for ROS filers.

Ireland is also moving ahead with VAT modernisation. Revenue has confirmed that from 1 November 2028, VAT-registered large corporates in Ireland must send structured eInvoices for domestic B2B transactions and report a subset of that invoice data to Revenue. From the same date, all businesses in Ireland must be able to receive structured eInvoices. Even if your business is not a large corporation, this still matters because customers, suppliers and finance systems will gradually need to work in a more structured digital environment. 

If you trade in both Ireland and the UK, this is where SME Business Solutions, Specialist Tax and News & Insights become especially useful, because the practical issue is rarely just one filing deadline. It is the whole reporting process around it.

What Northern Ireland businesses should watch closely

Northern Ireland businesses often sit in the most complex position. You may be dealing with HMRC requirements on one side and Irish Revenue expectations on the other, especially if you buy, sell or structure operations across borders. That does not always mean double filing for the same issue, but it does mean your systems need to be accurate, well organised and clear about which entity and which jurisdiction each transaction belongs to. SCC’s Cross-Border Accounting & Tax service is designed around exactly that kind of challenge. 

What you should do now

The best next step is usually practical rather than dramatic. Most businesses should be doing the following now:

• Check whether you are already within MTD for VAT because you are VAT-registered in the UK.
• Review whether your sole trader or property income could bring you into MTD for Income Tax from 6 April 2026, 6 April 2027 or 6 April 2028.
• Confirm whether your software is compatible with HMRC’s MTD requirements.
• Make sure your bookkeeping records are complete, digital and easy to reconcile.
• Review your Irish VAT process if you file through ROS or trade with Irish customers or suppliers.
• Prepare your invoicing systems for future Irish structured eInvoicing requirements.
• Clarify who in your business is responsible for data entry, review and filing.
• Get advice early if you operate across the UK, Northern Ireland and Ireland.

Those steps sound simple, but they are often where businesses discover old errors, weak controls or gaps between departments. That is why services such as Internal Audit, External Audit, Corporate Finance and Recovery & Restructuring can also become relevant when reporting quality affects wider business decisions. 

Common mistakes to avoid

A common mistake is assuming MTD is only about buying software. Software matters, but it will not fix poor coding, inconsistent invoicing, weak VAT treatment or unclear responsibilities inside your business. Another mistake is waiting until a deadline is close. By that stage, even small issues can become expensive and disruptive.

It is also a mistake to assume the UK and Ireland are moving at exactly the same pace or under the same rules. They are not. The UK has a formal MTD framework run by HMRC. Ireland has its own digital tax environment through Revenue and its own VAT modernisation timetable. 

If you are active in both markets, you need a process that reflects both systems rather than forcing one country’s logic onto the other.

Why acting early matters

Businesses that prepare early usually get more than basic compliance. They tend to end up with cleaner records, better visibility over cash flow and fewer surprises at year end. They are also in a better position to deal with funding, planning and growth decisions, because their numbers are easier to trust. 

That can feed into broader support areas such as Forensics & Investigations where data quality matters, or more strategic conversations around growth and transaction readiness.

Final thoughts

If you are based in the UK, MTD is already part of the VAT landscape and Income Tax changes are now on a live timetable. If you are based in Ireland, the system is different, but digital VAT administration and eInvoicing are moving forward. If you operate in Northern Ireland or across borders, you need to think about both. 

Now is the right time to review your systems, tighten your records and make sure your business is ready for what comes next. If you want practical support with digital reporting, bookkeeping and cross-border tax compliance, contact SCC Chartered Accountants and explore their Tax Compliance and Digital Bookkeeping services.