Making Tax Digital (MTD) for Income Tax for Construction Businesses in Poole, Bournemouth and surrounding areas
What is Making Tax Digital (MTD) for Income Tax?
MTD for income tax is a new UK government initiative requiring businesses and self-employed individuals earning above £10,000 per year to maintain digital records and submit quarterly updates to HMRC via compatible software. This applies to construction contractors, subcontractors, and tradespeople in Dorset. By using digital bookkeeping software, you can keep track of income, expenses, and deductions efficiently, reducing errors and ensuring compliance with HMRC requirements.
Making Tax Digital (MTD) for Income Tax – Timeline
Key dates for construction contractors and subcontractors to comply with HMRC’s MTD for Income Tax initiative.
6 April 2026 – Mandatory for Income Above £50,000
Self-employed individuals, CIS subcontractors, and landlords with qualifying income above £50,000 must start MTD for income tax. Keep digital records and submit quarterly updates via compatible software.
6 April 2027 – Mandatory for Income Above £30,000
The threshold lowers to £30,000, bringing more construction businesses in Dorset, Poole, and Bournemouth into the MTD regime. Quarterly digital reporting becomes compulsory.
6 April 2028 (Planned) – Threshold Reduces to £20,000
Future expansion will include all construction businesses and tradespeople earning over £20,000. Full digital records and MTD compliance will be required.
Additional Notes:
HMRC will notify affected taxpayers when they must join MTD for income tax.
Voluntary early adoption is allowed if you want to start digital record-keeping sooner.
Quarterly reporting deadlines: Q1 – 7 August, Q2 – 7 November, Q3 – 7 February, Q4 – 7 May.
End-of-year final declaration aligns with Self Assessment deadline: 31 January following the tax year.
Why MTD Matters for Construction Businesses
Construction businesses often deal with complex financials, subcontractor payments, CIS deductions, VAT, and project-based expenses. MTD helps you:
Maintain accurate, digital financial records
Submit quarterly income tax updates instead of just an annual return
Track CIS deductions and refunds efficiently
Avoid penalties and stay compliant with HMRC
Make better financial decisions with real-time reporting
How RCL Accountants Supports MTD Compliance
Digital Record-Keeping
We set up your cloud accounting software to store all income, expenses, and CIS payments digitally, ensuring you meet HMRC’s MTD requirements.
Quarterly Updates
We prepare and submit quarterly income tax updates directly to HMRC, keeping your tax obligations on track and avoiding penalties.
CIS & VAT Integration
Our team handles construction-specific tax issues, including CIS deductions, VAT reporting, and reverse charge considerations, integrating them with your digital records.
End-of-Year Self Assessment
We consolidate your quarterly updates into a final Self Assessment return, ensuring full compliance and accurate tax liability reporting.
Who We Help
Construction contractors and subcontractors in Dorset, Poole, and Bournemouth
Tradespeople running sole trader businesses
Small construction firms needing MTD compliance support
CIS-registered subcontractors claiming refunds
Benefits of Using RCL Accountants for MTD
Full compliance with Making Tax Digital for income tax
Real-time digital record keeping and bookkeeping
Expert guidance for CIS and VAT in construction
Quarterly tax updates and end-of-year Self Assessment filing
Local expertise for Dorset, Poole, and Bournemouth construction businesses
Frequently Asked Questions (FAQs)
What is Making Tax Digital for income tax?
It’s a UK HMRC initiative requiring digital record-keeping and quarterly updates for eligible taxpayers, including self-employed construction professionals.
Who in construction needs MTD?
Contractors, subcontractors, and tradespeople earning above the HMRC threshold must comply.
Can RCL Accountants handle all submissions?
Yes, we set up your digital bookkeeping, submit quarterly updates, integrate CIS and VAT, and file your final Self Assessment return.
Contact RCL Accountants for MTD Support
Ensure your construction business in Dorset, Poole, or Bournemouth is fully compliant with MTD for income tax. Get in touch with RCL Accountants for expert digital bookkeeping, quarterly updates, and Self Assessment support.