Making Tax Digital for CIS Subcontractors – Dead Simple Has You Sorted
You’re on site all week. The last thing you want on a Friday evening is to think about quarterly tax submissions. That’s exactly what we’re here for.
Does MTD Apply to You?
Here’s the thing most subbies don’t realise: the £50,000 threshold is based on your gross income — that’s the total before your contractor deducts anything under CIS.
So if you’re taking home around £42,000 after a 20% CIS deduction, your gross qualifying income is actually £52,500. You’re already in scope. And HMRC will expect you to be ready from 6 April 2026.
Quick check — add your CIS deductions back to what you actually received. That’s your qualifying income.
| Net pay in your pocket | At 20% CIS, your gross income is | MTD from |
| ~£40,000 | ~£50,000 | April 2026 |
| ~£24,000 | ~£30,000 | April 2027 |
| ~£16,000 | ~£20,000 | April 2028 |
So What’s Actually Changing?
Right now, most subbies do one self-assessment a year — either themselves or through an accountant. Job done.
From April 2026, if your gross income is over £50,000, that changes. You’ll need to:
- Keep digital records of your income and expenses throughout the year
- Submit a quarterly update to HMRC (four times a year, not once)
- Do a final year-end declaration confirming everything
The self-assessment deadline (31 January) stays the same. The difference is you can’t leave everything until then anymore.
What’s This Got to Do With CIS Specifically?
A fair bit, actually. Under CIS, your contractor deducts 20% (or 30% if you’re unregistered) from your labour payments and pays it to HMRC on your behalf. That money sits there as an advance payment against your tax bill.
Thousands of CIS subcontractors receive a tax rebate — or tax refund — every year, because CIS deductions are taken on your labour income before your expenses are counted. Once tools, materials, van costs and mileage are factored in, the amount HMRC has collected on your behalf is often more than you actually owe.
Under MTD, all of this feeds through your quarterly updates and gets reconciled at year end — just as it does now in your self-assessment, but more regularly and digitally.
We handle all of it. The deductions, the rebate claim, the quarterly filings, the self-assessment. Every year.
Why Is This Different for Subbies Compared to Everyone Else?
Because your income can be all over the place. Three cracking months, one quiet one. A big job that finishes late. A contractor who takes a while to get your statement over.
Most MTD guidance is written for office workers with tidy, predictable income. Construction doesn’t work like that. That’s why you need someone who actually gets it.
We work with electricians, plumbers, groundworkers, scaffolders, roofers, plasterers, and general traders across the country. We know how CIS statements work, why your deductions don’t always match up, and what you can and can’t claim.
Sound Like the Right Fit? Drop Us a Line.
We’ll aim to get back to you same day.
That link will open your email with the subject line already filled in. Just tell us a bit about your situation and we’ll take it from there.
What We Do for You — From £85 a Month
Our Full Moon package is built for subbies who want it completely handled.
- ✅ Full bookkeeping handled by us — connected directly to your business bank account, so we can see what’s coming in and going out automatically
- ✅ FreeAgent set up and managed for you (saves you £330/year — included free)
- ✅ All four quarterly MTD submissions filed on time
- ✅ CIS deductions tracked and reconciled
- ✅ Your CIS tax rebate and tax refund claimed as part of your self-assessment
- ✅ Self-assessment tax return — included, no extra charge
- ✅ Year-end final declaration sorted
You connect your business bank account. We do the rest. No shoeboxes of receipts. No chasing statements. No spreadsheets.
From £85 per month. Everything in.
FreeAgent — Your Books, Sorted Automatically
FreeAgent is the software we use to run your books. It connects to your business bank account and pulls in your transactions automatically — so we can see what you’ve been paid, categorise your income, and track your expenses without you having to manually input a thing.
It’s HMRC-recognised for MTD and rated best in class. On its own it costs £33/month. With us, it’s included free provided you open a Mettle account (also Free)
You get a real-time view of what you owe HMRC — so no nasty surprises at year end.
The Deadlines You Need to Know
| Quarter covers | Submit by |
| 6 April – 5 July | 7 August |
| 6 July – 5 October | 7 November |
| 6 October – 5 January | 7 February |
| 6 January – 5 April | 7 May |
Plus your final declaration by 31 January — same as your self-assessment always was.
Miss a submission? You’ll start collecting penalty points. Two points and it’s a £200 fine, with more to follow. We make sure that never happens.
Need More Info?
Not ready to email yet? Head back to our MTD hub for more guides, software reviews and deadline info.
👉 Visit the Making Tax Digital Hub
Yes — if your qualifying income is over the threshold, MTD applies regardless of whether you have gross payment status or standard 20% deductions.
The threshold is based on the previous tax year’s self-assessment return. So if your 2024/25 income was over £50,000, you’re in from April 2026 — even if next year is quieter. Once you’re in, you need to stay below threshold for three consecutive years to drop out.
No. We set FreeAgent up for you, connect it to your bank, and handle everything from there. Your job is to make sure payments go through your business account. That’s genuinely it.
Yes — your CIS tax rebate, or tax refund, is claimed as part of your self-assessment, which is included in your package. We’ll make sure every allowable expense is captured so you get back everything you’re owed.
No — CIS deductions only apply to the labour portion of your payment. Materials are paid gross. We track this correctly in your books.
Drop us an email. We’ll work it out with you — no obligation.
