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From April 2026, CIS workers earning over £50,000 will be legally required to follow Making Tax Digital (MTD) for Income Tax Self Assessment. This means keeping digital records, submitting quarterly updates to HMRC, and using MTD-compliant software.
At CloudAccountant.co.uk, we specialise in supporting Construction Industry Scheme contractors. Our MTD for CIS service is designed to remove the admin, reduce risk, and keep you fully compliant – without disrupting your work.
Making Tax Digital (MTD) is HMRC’s initiative to modernise the UK tax system. For CIS workers, this represents a major change in how income is recorded and reported.
Instead of submitting one annual Self Assessment tax return, you’ll need to:
From April 2026, you’ll need to record all your CIS payments and allowable business expenses digitally. HMRC will no longer accept paper records or basic spreadsheets, so your bookkeeping must be accurate, up to date, and stored electronically at all times.
Instead of filing one tax return per year, you’ll be required to submit quarterly updates showing your CIS income and expenses. These updates must be sent using MTD-compliant software that connects directly to HMRC, helping keep your records aligned and reducing the risk of late filing penalties.
At the end of the tax year, you’ll still complete a final declaration, similar to your current Self Assessment. This confirms your full CIS income, expenses, deductions, and any tax owed, pulling together everything submitted throughout the year into one final, accurate return.
To stay compliant, you’ll need to use software officially recognised by HMRC for Making Tax Digital. Platforms like FreeAgent make it easy to track CIS income, record expenses, and submit updates directly — and our team will set it up, manage it, and support you every step of the way.
If you’re working in construction and earning through the CIS, these changes apply to you – even if you’re used to filing a single Self Assessment once a year. The days of spreadsheets and paper records are coming to an end.
At CloudAccountant.co.uk, we know that CIS contractors face unique challenges – from navigating tax deductions to managing irregular income and expenses. That’s why we’re developing a new accountancy package tailored specifically to support CIS workers through the upcoming Making Tax Digital (MTD) changes.
Our service is designed to take care of everything HMRC requires, so you can focus on your work while we handle the numbers. With this package, we include:
We will include free initial software training with one of our accountants to familiarise you with how you’ll need to maintain your records.
Each quarter, we’ll submit your MTD updates on your behalf using HMRC-recognised software. You won’t need to worry about deadlines, formatting or filing errors – we’ll make sure everything goes in on time and in the right format.
Once the tax year ends, we’ll handle your final MTD declaration – pulling together your quarterly updates and applying any final adjustments. This ensures your annual return is complete, accurate, and submitted without hassle.
Some CIS workers on a basic rate overpay tax during the year due to automatic deductions from contractors. Our team will review your income and expenses in detail to ensure that any tax you’re owed gets reclaimed as quickly and efficiently as possible.
Whether you’ve got a quick question or need help understanding the new rules, our friendly and knowledgeable accountants are here to support you – by phone, email or video call, whenever you need us.
The monthly price for the package above does not include accounting software or ongoing bookkeeping support. FreeAgent is available at no cost if you open a business bank account with NatWest, RBS, Ulster, or Mettle, and some CIS workers choose to manage their own records with the help of our free software training.
If you would prefer a more hands-off approach, both accounting software and ongoing bookkeeping support can be added to your package for a simple, low monthly fee.
For £12 per month, you can add a FreeAgent licence to your package. This gives you access to HMRC-recognised, Making Tax Digital–compliant software, with full setup completed by our team. We’ll also include a free initial training call with one of our accountants, showing you how to record your CIS income and allowable expenses correctly and keep your digital records in line with HMRC requirements.
If you open a business bank account with NatWest, RBS, Ulster, or Mettle, FreeAgent is provided completely free, meaning there is no additional monthly software cost.
For an additional £20 per month, you can add ongoing bookkeeping support to your package and leave the admin to us. We’ll keep your CIS income and allowable expenses accurately recorded and organised throughout the year, ensuring your digital records stay up to date, HMRC-compliant, and fully prepared for Making Tax Digital quarterly submissions.
This option is ideal if you want peace of mind knowing your bookkeeping is handled properly, while you focus on your work onsite rather than paperwork.
Making Tax Digital is HMRC’s new system for reporting income tax digitally. For CIS workers earning over £50,000 a year, it becomes mandatory from April 2026. Instead of submitting one tax return a year, you’ll need to send digital records and quarterly updates using approved software.
If you fail to comply with the new rules, you could face penalties and interest charges from HMRC. MTD will be a legal requirement, and HMRC will monitor digital submissions and deadlines closely. That’s why it’s important to get prepared early and use an accountant who understands the process.
Yes, you’ll need to use HMRC-approved software (like FreeAgent, Xero, or similar). The software must be capable of submitting your records to HMRC in the correct format. As part of our package, we’ll set all this up for you and keep everything updated and accurate.
We’re building a dedicated MTD service, designed to remove the stress and confusion. We’ll handle everything from the digital bookkeeping to quarterly submissions, so you can focus on your work without worrying about tax deadlines.
