8 articles

VAT and MTD

Practical guides on vat and mtd for UK construction subcontractors and contractors.

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VAT and MTD
Do You Need an Accountant for MTD as a CIS Subcontractor?
Making Tax Digital for Income Tax carries no legal requirement to use an accountant. Every quarterly update and the year-end tax return can be filed by the subcontractor directly through HMRC-recognised software, and free products exist for simple affairs. The honest answer is that MTD compliance and CIS tax accuracy are two different jobs: the first is largely a software problem, the second is where money is won or lost. This guide sets out who can genuinely self-serve, where a specialist pays for itself, and the break-even arithmetic for a CIS subbie in 2026/27.
4 August 20268 min read
VAT and MTD
How to Sign Up for Making Tax Digital: a CIS Subcontractor Walkthrough
Signing up for Making Tax Digital for Income Tax is a separate action from being in scope for it. HMRC checks your qualifying income on the Self Assessment return you have already filed, then expects you to sign up through the online service using your existing Government Gateway credentials, pick compatible software and authorise it. This walkthrough covers what HMRC asks for at each screen, when your accountant can do it for you, which update periods to choose, and what quarterly reporting does and does not change about the timing of your CIS refund.
4 August 20268 min read
VAT and MTD
MTD deadline extended: what actually changed for CIS subbies
Making Tax Digital for Income Tax has been pushed back four times since 2015, which is why the phrase MTD deadline extended still returns thousands of searches. It has not been pushed back again. The £50,000 phase went live on 6 April 2026, the £30,000 phase is fixed for 6 April 2027 and the £20,000 phase for 6 April 2028. This guide separates the deferrals that genuinely happened from the ones subcontractors assume are still coming, and sets out what remains open.
4 August 20266 min read
VAT and MTD
How to Keep VAT and CIS Records: What HMRC Actually Requires
A VAT-registered construction business must keep its VAT records for at least 6 years, and a sole trader subcontractor must keep Self Assessment records for 5 years after the 31 January filing deadline. Those two periods run on different clocks and catch different documents, which is why so many trades throw away the wrong paperwork at the wrong time. This guide sets out what HMRC requires on the VAT side, how the domestic reverse charge changes the paper trail, where CIS deduction statements fit, and what the digital record rules mean in practice.
4 August 20269 min read
VAT and MTD
Making Tax Digital and CIS: what subcontractors must do from 2026
Making Tax Digital for Income Tax (MTD ITSA) became live for sole traders earning over £50,000 from 6 April 2026. For CIS subcontractors, the threshold trap is critical: HMRC tests your gross income, not the money you actually bank after deductions. This guide explains who is in scope now, who joins in April 2027, what quarterly updates require, and how to keep your CIS records in a way that feeds straight into MTD-compatible software.
12 June 20269 min read
VAT and MTD
VAT Domestic Reverse Charge in Construction: A Practical Guide
The VAT domestic reverse charge (DRC) for construction has been in force since 1 March 2021 and continues unchanged in 2026/27. Under the DRC, the customer accounts for VAT to HMRC rather than the supplier. This guide explains the five conditions that must all be met, the end-user exception (the most widely misunderstood part), the 5% de minimis, how a reverse-charge invoice should look, and what the rules mean for a subcontractor's cash flow.
12 June 202613 min read
VAT and MTD
VAT Reverse Charge for CIS Contractors: Recipient Guide 2026/27
When a VAT-registered subcontractor carries out CIS work for a VAT-registered main contractor and both parties are CIS-registered, the domestic reverse charge (DRC) applies. That means the subcontractor issues the invoice without VAT, and it is the contractor who accounts for the VAT to HMRC. This guide explains what the contractor must do, how to complete the VAT return correctly, the end-user exception, and how to handle invoices where the subcontractor gets the treatment wrong.
12 June 202610 min read
VAT and MTD
VAT Reverse Charge for CIS Subcontractors: Supplier Guide 2026/27
The VAT domestic reverse charge (DRC) for construction services places the VAT accounting obligation on your customer, not on you. As a subcontractor, you issue the invoice without charging VAT, and your customer accounts for it to HMRC. This guide covers the five-condition checklist you must run before issuing a DRC invoice, what to write on the invoice, how the DRC affects your cash flow, whether to exit the flat-rate scheme, and when you must still charge VAT normally (the end-user exception).
12 June 20268 min read

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