MTD for tradespeople
For self-employed electricians, plumbers, builders, heating engineers and solar installers.
Why turnover matters for trades
Qualifying income is measured before expenses. HMRC. Trades that buy in a lot of materials, such as panels, batteries, boilers or cable, can cross the threshold even with modest profits, so check your gross figure.
Construction Industry Scheme (CIS)
HMRC's software listings show whether each product supports the Construction Industry Scheme for your tax return. 45 of the 158 products show CIS as ready now. Use the CIS ready filter in the finder.
VAT-registered trades
If you're VAT registered, HMRC says you should check whether your VAT software also works with MTD for Income Tax, or that your new software meets your VAT needs. HMRC.
Electricians, plumbers and solar installers
For most one-person trade businesses, full bookkeeping software that links to your bank and lets you photograph receipts on site is the simplest route. If you already keep good spreadsheets, bridging software can be cheaper. Either way, filter for Sole trader, Files tax return and CIS ready if you do subcontract work.
Frequently asked
I'm an electrician earning £35k turnover but £18k profit. Do I need MTD?
Very likely, from 6 April 2027 if that £35,000 turnover was in 2025 to 2026, because the threshold uses income before expenses. HMRC. Check your own figures with HMRC's tool.
Does wage income from a part-time job count?
No. Employment (PAYE) income doesn't count towards qualifying income. HMRC.
Which MTD software supports CIS?
HMRC's listing shows CIS support for each product. 45 products currently show it as ready now. See our finder.