Northern Ireland’s Cashless Shift: What It Means for Small Businesses and Tax

Across Northern Ireland, from Omagh’s town centre to the shops in surrounding villages, the sound of coins in tills is becoming rarer. More and more customers are tapping cards, scanning phones, and shopping online. For many small businesses, this digital shift is changing not just how they’re paid, but how they manage their money and taxes too.

Cash payments have fallen sharply in recent years, with contactless now the norm in most towns and cities. But Northern Ireland’s connection to cash remains strong. Local traders say many customers still prefer the familiarity and independence of paying by note or coin, particularly older people and those in rural communities.

There’s no denying that technology is transforming how business is done, and for some, it’s bringing clear benefits. Digital payments reduce the risk of theft, simplify accounting, and make record-keeping easier. For those who embrace it, going digital can save valuable time at the end of each week.

The same logic is behind Making Tax Digital (MTD), the government’s major reform of the tax system. Under MTD, self-employed workers and small businesses will keep digital records and submit tax information online every quarter. Those earning over £50,000 will join first in April 2026, followed by those earning over £30,000 in 2027.

While some traders initially worried about extra admin, others are approaching MTD with cautious optimism. Digital record-keeping can bring clearer insights into cashflow and make it easier to stay organised throughout the year. However, it also requires time to adjust and some investment in new software or training. For many small business owners, the hope is that once the system is in place, the benefits such as fewer errors and simpler tax preparation will outweigh the initial effort and cost.

The Federation of Small Businesses (FSB) has urged the government to make the transition as smooth as possible, while recognising the opportunities it offers.

“Ensuring that our high streets thrive and creating conditions in which everyone can start and succeed in business are crucial priorities for small firms, communities and the economy,” the FSB’s Northern Ireland policy chair said earlier this year.

Still, balance remains key. Digital tools bring efficiency and transparency, but cash continues to play an important role in local life. In many towns like Omagh, traders say cash helps keep spending local and supports customers who are less comfortable with technology.

As Northern Ireland moves toward a more digital future, the goal for most small businesses isn’t to choose between cash or cards, but to make both work side by side. Digital payments and online tax systems may be the way forward but the feel of a note in hand still connects communities, customers, and commerce in ways technology can’t quite replace.

Lisa Ferris is a Chartered Accountant at Abac, Chartered Accountants.

This article is for general information only. You are recommended to seek professional advice before taking action on the basis of the contents of this article.