Prepare Now For Making Tax Digital

If you’re self-employed and working under the Construction Industry Scheme (CIS), Making Tax Digital (MTD) is set to change the way your tax is managed.

MTD means more frequent reporting, mandatory software, and tighter compliance rules. For many CIS workers, it will affect how and when you report income, how you claim a tax rebate, and how organised your records need to be throughout the year.

Who Is Affected?

The rollout of MTD is phased:

• 2026 Applies to those who earn £50k+
• 2027 Applies to those who earn £30k+
• 2028 Applies to those who earn £20k+
  

What Do You Need To Do?

If you currently complete a Self Assessment tax return each year, you will need to move to digital quarterly reporting using approved software such as FreeAgent.

Instead of one annual submission, you’ll be required to send updates to HMRC every quarter, followed by a final declaration.

If you’re earning £50k+ and are affected by MTD this year, the following deadlines will apply.

More deadlines mean more chances to miss one if you’re not organised.

Importantly, if your records aren’t digital, or you’re not submitting through approved software, any tax rebate you may be entitled to could be delayed or refused altogether.

Penalties

While HMRC has indicated there will be a short ‘soft landing’ period as MTD begins, enforcement will tighten.

A points-based system will apply to late submissions. Once you reach a certain number of points, financial penalties kick in. Continued non-compliance will lead to further fines – early preparation is key.

Get Prepared – Let Us Help

MTD requires you to keep digital records and submit updates using HMRC-compliant software such as FreeAgent or another compatible system.

We are here to help you get set up properly from the start. We guide you through using FreeAgent (another compatible software of your choice), so you understand how to record your income, expenses and CIS deductions correctly. We take the time to make sure you’re comfortable using the system.

Once you’re set up, we continue to work with you throughout the year. We keep track of quarterly deadlines, prepare submissions accurately, and ensure everything is filed on time. You’ll know exactly where you stand and won’t be left worrying whether something has been missed. Find out more about our MTD service.

Next Steps

Our team is here to guide you through every step, from software setup and training to managing your quarterly submissions and ensuring everything is submitted correctly and on time, we make the entire process simple.

Get in touch to find out more.