CIS Subcontractor Records and Making Tax Digital: What Tradespeople Need to Know
In short: For HMRC's Making Tax Digital, a CIS subcontractor is a sole trader like any other: gross contracting income, before CIS deductions, counts towards the same thresholds, so over £50,000 in 2024-25 means MTD from 6 April 2026. Once in scope, you keep digital records of materials, tools, van and fuel costs and send HMRC quarterly category totals.
Read MoreDo You Need an Accountant for Making Tax Digital?
In short: You don't have to use an accountant for HMRC's Making Tax Digital: keeping your own digital records and filing through HMRC-recognised software is a legitimate route for one simple income stream and low transaction volume. Consider an accountant if you have self-employment plus property, multiple income sources, high-volume transactions or capital allowances to judge.
Read MoreMaking Tax Digital Exemptions: Who's Out of Scope for MTD
In short: You're out of scope for HMRC's Making Tax Digital for Income Tax if your qualifying income hasn't crossed £50,000, £30,000 or £20,000 in the relevant tax year, or you have no self-employment or property income. Over a threshold, you can apply for the digital exclusion exemption on grounds of age, disability or a health condition, location or religion.
Read MoreMaking Tax Digital for the Self-Employed: The Complete 2026-27 Guide
In short: HMRC's Making Tax Digital for Income Tax has applied since 6 April 2026 to UK sole traders and landlords with qualifying income (gross, before expenses) over £50,000: in 2026-27 they keep digital records, send four quarterly updates and file a final return by 31 January. The threshold falls to £30,000 from 6 April 2027 and £20,000 from 6 April 2028.
Read MoreMissed an MTD Quarterly Update? Here's What Actually Happens
In short: If you were mandated into HMRC's Making Tax Digital from 6 April 2026, a late quarterly update earns no penalty point in the 2026-27 tax year. You still need to send the missed update: HMRC says you must send your quarterly updates before you can submit your tax return. Late payment and a late final declaration (due 31 January 2028) are still penalised.
Read MoreMTD Client Onboarding: A Checklist for Accountants (April 2027 and April 2028 Waves)
In short: To onboard clients for HMRC's next Making Tax Digital waves, segment your book by qualifying income, contact April 2027 clients during 2026, standardise the records layer across clients, use the 2026-27 waiver to fix habits, and keep penalty explanations simple. Over £30,000 in 2025-26 means MTD from April 2027; over £20,000 in 2026-27 means April 2028.
Read MoreMTD for Income Tax from April 2027: The £30,000 Threshold
If your self-employment or rental income was over £30,000 in the 2025-26 tax year, Making Tax Digital for Income Tax becomes mandatory for you from 6 April 2027. This is the second wave of the MTD rollout, following the £50,000 group that joined from April 2026, and it draws in a considerably larger number of sole traders and landlords. Here's exactly who's affected, why the current tax year matters more than most people realise, and what's worth setting up now rather than in March 2027.
Read MoreMTD for Income Tax from April 2028: The £20,000 Threshold
From 6 April 2028, Making Tax Digital for Income Tax extends to sole traders and landlords with qualifying income over £20,000 in the 2026-27 tax year. It's the third and, so far, final wave of the rollout HMRC has confirmed. Because £20,000 is a relatively low bar for combined self-employment and property income, it brings in a large slice of the UK's smaller sole traders, part-time landlords, and side hustlers. Here's the full phase-in timeline, who the £20,000 threshold catches, and what's actually confirmed about where MTD goes from here.
Read MoreMTD for Landlords: How Making Tax Digital Applies to Rental Income
In short: HMRC's Making Tax Digital for Income Tax applies to UK landlords on exactly the same rules as the self-employed. Your gross rental income, before repairs, letting agent fees or mortgage interest, is added to any self-employment income, and over £50,000 in 2024-25 means MTD from 6 April 2026. The threshold falls to £30,000 from April 2027 and £20,000 from April 2028.
Read MoreMTD Penalty Points Explained: How the System Works
In short: Under HMRC's Making Tax Digital for Income Tax, each missed submission deadline (a quarterly update or the tax return) earns 1 point, and 4 points triggers a £200 penalty, with another £200 for each further miss at the threshold. Below the threshold, each point expires after 24 months. Late 2026-27 quarterly updates earn no points for those mandated from April 2026.
Read MoreMTD Quarterly Update Deadlines: The Full 2026-27 Calendar
In short: For the 2026-27 tax year, HMRC's Making Tax Digital quarterly updates are due by 7 August, 7 November, 7 February and 7 May. Each update is cumulative from 6 April, so it covers the whole year to date, and nil updates are mandatory. The final declaration is due by 31 January after the tax year ends.
Read MoreMTD Software vs Receipt Scanning Apps: What's the Difference?
In short: Under HMRC's Making Tax Digital for Income Tax, MTD-recognised filing software sends your quarterly updates and final declaration to HMRC. A receipt-scanning app captures and categorises your expense records but never submits anything. Everyone in MTD needs filing software, used by them or their accountant; a records app is optional, and HMRC supports combining the two through digital links.
Read MoreQualifying Income for MTD Explained: How It's Calculated
In short: For HMRC's Making Tax Digital for Income Tax, qualifying income is your gross self-employment turnover plus your gross property income, before expenses. PAYE employment income, dividends, savings interest and pension income don't count. Over £50,000 in 2024-25 means MTD from 6 April 2026, over £30,000 in 2025-26 from 6 April 2027, and over £20,000 in 2026-27 from 6 April 2028.
Read MoreSimplified Expenses for UK Sole Traders: How Flat Rates Work
In short: HMRC's simplified expenses let UK sole traders, and partnerships with no limited company partner, claim flat rates instead of actual costs, most commonly a rate per business mile and a monthly amount for working from home based on hours worked. Limited companies can't use them, you still keep a mileage or hours log, and the current rates are on gov.uk.
Read MoreSole Trader Plus Landlord? How Combined Income Affects MTD
In short: HMRC adds your self-employment and property income together for the Making Tax Digital test: a £30,000 trade plus £25,000 of rent makes £55,000, over the £50,000 threshold, so MTD applied from 6 April 2026. The same test applies at the £30,000 (6 April 2027) and £20,000 (6 April 2028) thresholds, but once you're in, each income source gets its own quarterly updates.
Read MoreUber and Deliveroo Driver Taxes in the UK: How MTD Applies to Gig Drivers
In short: HMRC treats self-employed Uber and Deliveroo drivers as sole traders, so gross platform earnings, combined across every app, count towards the Making Tax Digital thresholds: over £50,000 in 2024-25 means MTD from 6 April 2026, over £30,000 in 2025-26 from 6 April 2027, and over £20,000 in 2026-27 from 6 April 2028. Once in scope, you send HMRC quarterly category totals of income and expenses.
Read MoreUK Sole Trader Allowable Expenses: A Guide for 2026-27
In short: For 2026-27, HMRC lets UK sole traders deduct a cost from their income if it was incurred wholly and exclusively for the business, and mixed-use costs are apportioned to the business share. The main allowable categories are office costs, travel, vehicle costs, staff costs, stock and materials, and use of home; client entertainment, everyday clothing and commuting are not allowable.
Read MoreWhat Actually Goes in an MTD Quarterly Update
In short: An HMRC Making Tax Digital quarterly update contains only a total for each income and expense category, aligned to the Self Assessment return categories, not individual receipts or invoices. Each update is cumulative from 6 April, nil updates are still required, and you keep the underlying records for at least five years after the 31 January deadline for that tax year.
Read MoreWhat Digital Records Do You Actually Need for Making Tax Digital?
In short: Under HMRC's Making Tax Digital for Income Tax, you need a digital record of every business transaction showing at least the date, the amount and a Self Assessment-aligned category. HMRC never receives your receipts, only quarterly category totals, but you keep the receipts as evidence. A spreadsheet still counts if it is digitally linked to your filing software.
Read MoreYour First MTD Year: A Record-Keeping Checklist for 2026-27
In short: In your first year of HMRC's Making Tax Digital (2026-27), confirm you're in scope, sign up, choose a records layer plus filing software or an accountant, record expenses digitally as they happen, and diary 7 August, 7 November, 7 February, 7 May and 31 January. Late quarterly updates cost no penalty points this year, but late returns and payments are still penalised.
Read MoreUK Self Assessment Deadline: What You Need to Submit by January 31
The UK Self Assessment deadline falls on 31 January every year, and it applies to millions of self-employed individuals, freelancers, landlords, and higher-rate taxpayers across the country. If you need to file a Self Assessment tax return for the 2025/26 tax year, 31 January 2027 is your final date to both submit your return online and pay any tax you owe. Miss it, and you'll face automatic penalties, even if you owe nothing.
Read MoreUK Self Assessment Tax Return: A Step-by-Step Guide for the Self-Employed
In short: To file a UK Self Assessment return as a self-employed person, register with HMRC and get your UTR, set up a Government Gateway account, gather your income and expense records, complete the SA100 and SA103S or SA103F online, then submit and pay what you owe. For the 2025/26 tax year, the online filing and payment deadline is 31 January 2027.
Read MoreUK Self Assessment: Last-Minute Filing Guide Before January 31
In short: HMRC accepts online Self Assessment returns until midnight on 31 January. Gather your UTR, Government Gateway login, and income and expense records, then log in, answer the tailoring questions, complete each section, review, submit, save the confirmation and pay what you owe. If you can't pay in full, file anyway and set up a Time to Pay arrangement.
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