Making Tax Digital for Tradesmen
CIS deductions, a van full of tools, materials on every job and work across several sites — trade tax can get messy. We’re MTD-ready accountants for self-employed tradesmen and subcontractors across the UK, on fixed monthly fees.
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The Tax Digital Team
Tradesmen Specialists
We speak trade.
You’d rather be on the job than buried in CIS statements and merchant receipts. We understand how trade work runs — subcontract pay with tax already taken, tools, materials and a van. We turn it into clean digital records and quarterly MTD submissions, and make sure you reclaim every CIS penny you’ve overpaid.
Direct WhatsApp Access
Quarterly Zoom Reviews
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The MTD Checklist
Tick the boxes that apply to your business.
Tradesmen MTD Readiness Checklist
Not Yet Compliant
Select items from the list to see your status.
Why Tradesmen Switch to TaxDigital
Tradesmen usually come to us because they want things handled properly, without chasing, confusion, or last-minute stress. Here is what is different when you work with Tax Digital.
| Feature | Traditional Accountant | TaxDigital for Tradesmen |
|---|---|---|
| Record Keeping | Paper receipts & spreadsheets | 100% Paperless via App |
| Response Time | Days or weeks | Same Day / Instant Chat |
| Pricing Model | Hourly billing + Year-end bill | Fixed Monthly Subscription |
| Tax Visibility | Surprise bill once a year | Real-time Liability View |
| Industry Knowledge | Generalist (Jack of all trades) | Specialist Tradesmen Team |
| Software | Desktop / None | Xero / QuickBooks / FreeAgent |
MTD is for Sole Traders — Here's Yours
Making Tax Digital only applies to sole traders and landlords. We've built a dedicated package specifically for you — no fluff, no overpaying for things you don't need.
Sole Traders — Sole Traders
Why MTD Matters for You
Quarterly Digital Reporting
HMRC now requires quarterly submissions via MTD-compatible software — we handle all of them for you.
Penalty-Free Compliance
Missing MTD deadlines carries real fines. We keep you compliant so you never have to worry.
Tax-Efficiency Built In
We don't just file — we find every legitimate deduction and reduce your bill, year after year.
Packages
Tradesmen typically want a package that keeps them compliant without paying for extras they do not need. We will point you to the right option based on whether you are VAT registered, under CIS, and whether you are a sole trader or limited company.
Detailed Plan Comparison
See exactly what’s included in each plan — no hidden fees, no surprises.
| Features |
Sole Traders
£69+VAT/per month
|
Landlords
£39+VAT/per month
|
|---|---|---|
| MTD Compliance | ||
| Quarterly MTD Submissions | ||
| HMRC Digital Account Setup | ||
| End-of-Year Final Declaration | ||
| Accountancy Services | ||
| Self Assessment Tax Return | ||
| Year-end Accounts | — | |
| VAT Returns | — | |
| Support & Advice | ||
| Support Channel | Email Only | Email & Phone |
| Dedicated Accountant | — | |
| Tax Planning Review | — | Annual |
| Software | ||
| Bookkeeping Software | Basic | Standard |
| Receipt Scanning | ||
| Real-time Tax Liability View | ||
| Get started | Choose Plan | Choose Plan |
* Prices exclude VAT. Terms and conditions apply.
Services for Tradesmen
How we saved Oak & Brick Building Services Ltd...
Oak & Brick is a small building firm. The director was great on site but fell behind with paperwork, and VAT returns were being done last minute. Receipts were in the van, invoices were spread across WhatsApp messages, and the bookkeeping was not matching the bank.
We moved them onto MTD-compatible software, set up a simple weekly routine, and connected the bank feed. We also introduced a clear process for raising invoices from the phone, capturing receipts, and tagging key costs (materials, fuel, tools, subcontractors). Within two VAT quarters, the numbers were reliable, and the director had a much clearer view of profit.
The biggest change was confidence. They stopped worrying about VAT deadlines and started making decisions based on up-to-date figures rather than guesswork.
Ready to simplify your tax?
Join hundreds of other tradesmen who have made the switch to digital.
"I’ve been very pleased with the service from Tax Digital. They did an excellent job helping me get compliant with MTD. The whole process felt…"
Kong Sasik
Verified Client"If you're a landlord, you'll know how hard it is to keep up with all the changing rules. MTD is just another headache. The TaxDigital…"
An Go
Verified Client"I contacted Tax Digital after doing a search on Google for my Hairdressing business. They have been great. Helped me understand what I need to…"
TRACEY G
Verified ClientTrade tax & CIS — your questions answered
Have more questions?
Speak to one of our tradesmen experts directly.
The Tradesmen Handbook
Everything you need to know about keeping your tradesmen business compliant and profitable.
Making Tax Digital for Income Tax (MTD for ITSA) moves self-employed reporting online. From 6 April 2026 it applies to sole traders with qualifying income over £50,000, falling to £30,000 (2027) and £20,000 (2028). Qualifying income is your gross turnover before expenses and before any CIS deductions, so most full-time tradesmen are in scope.
You will keep digital records, send a short quarterly update from compatible software, and file a final declaration. We confirm whether it applies and get you set up early.
Under the Construction Industry Scheme, contractors deduct money from your payments and send it to HMRC as advance tax — 20% if you are CIS-registered, 30% if you are not. Those deductions are credited against your Self Assessment bill. Because they are taken off your gross pay (before your expenses and personal allowance), subcontract tradesmen are very often due a refund. We reconcile every CIS statement, claim back what you have overpaid, and keep your verification current.
Common allowable costs for tradesmen include:
- Van and running costs (or mileage)
- Tools and equipment
- Materials and consumables used on jobs
- Public liability and tool insurance
- Workwear and PPE
- Trade memberships and certifications
- Phone, training, accountancy
Whatever your trade, we make sure every job’s costs and your van are captured correctly.
Your van and tools are the engine of the business, and the tax rules are generous. A van is plant and machinery, so you can usually write off its full cost in year one through the Annual Investment Allowance — unlike a car. Running costs (fuel, insurance, repairs, road tax) are deductible on the business share, or you can use simplified mileage (45p a mile for the first 10,000, then 25p) instead of actual costs and capital allowances. Tools and bigger equipment are claimed via capital allowances too. Larger plant and equipment is claimed through capital allowances. We pick the method that puts the most back in your pocket.
MTD quarterly updates fall due about a month after each quarter (7 August, 7 November, 7 February and 7 May); your final declaration and tax are due by 31 January. Xero, QuickBooks and FreeAgent are all MTD-ready and have mobile apps for snapping receipts and logging jobs on site. We set up the right one, connect it to HMRC and file every update for you.