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Trade Tax Specialists

4 articles

VAT and MTD

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

  • 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.

    9 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.

    13 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.

    9 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).

    8 min read
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