Last checked 19 October 2026
Quick answer
If you’re a self-employed electrician, plumber or heating engineer, MTD for Income Tax applies once your qualifying income (turnover before expenses) is over £50,000 (from 6 April 2026), £30,000 (from 6 April 2027) or £20,000 (from 6 April 2028), according to GOV.UK. Materials you charge customers for are part of your turnover.
This is general information, not tax advice. Check GOV.UK or speak to an accountant about your situation. Why we say this.
This guide is for electricians, plumbers, heating and gas engineers working as sole traders, whether you work for households, businesses or construction contractors.
What changes
Digital records
Your self-employment and property income and expenses are kept in compatible software. Spreadsheets can still be used with software that links to them.
Quarterly updates
Every 3 months your software sends HMRC a summary of income and expenses for each business. It isn’t a tax return.
A tax return at the end
You still submit one tax return a year, using your software, and pay your tax bill by 31 January after the tax year ends.
Does MTD for Income Tax apply to you?
GOV.UK says you need to use MTD for Income Tax if you’re a sole trader or landlord registered for Self Assessment, you get income from self-employment or property (or both), and your qualifying income is over the threshold for the relevant tax year. Qualifying income is your total self-employment and property income before expenses (turnover), not your profit.
| Qualifying income on your tax return for | Over | You’ll need to use MTD from |
|---|---|---|
| 2024 to 2025 | £50,000 | 6 April 2026 |
| 2025 to 2026 | £30,000 | 6 April 2027 |
| 2026 to 2027 | £20,000 | 6 April 2028 |
Source: Find out if and when you need to use Making Tax Digital for Income Tax, GOV.UK.
Because the test uses turnover, money you charge customers for parts and materials counts, even though you spent most of it at the wholesaler. HMRC’s self-employment notes describe turnover as the total your business receives (cash basis) or earns (traditional accounting) before taking off any expenses. If you’re paid through PAYE for another job, that doesn’t count towards qualifying income.
Even without a letter from HMRC, GOV.UK says it’s your responsibility to check. Its checker tool can help.
What you’ll need to keep digitally
GOV.UK says each digital record needs the amount, the date and a category (the same categories as Self Assessment). You also keep supporting records, such as bank statements and invoices, for at least 5 years after the 31 January deadline.
For electricians and plumbers, that typically means:
- Job payments, by bank transfer, card or cash
- Materials and parts: GOV.UK’s expenses guide lists things you buy to sell on, such as stock or raw materials, as allowable
- Your van: running costs such as fuel, insurance and repairs, or simplified mileage for goods vehicles at 55p a mile for the first 10,000 business miles in the 2026 to 2027 tax year, then 25p. GOV.UK’s expenses guide explains how buying a van is treated under cash basis and traditional accounting
- Tools, protective clothing, training and trade subscriptions
GOV.UK’s own example of separate businesses is an electrician who is also a driving instructor: each business needs its own digital records and quarterly updates.
If you work under CIS
If you do construction work for contractors, you may be paid under the Construction Industry Scheme, with deductions of 20% (or 30% if you’re not registered or the contractor can’t verify you) taken as advance payments towards your tax. HMRC’s self-employment notes say subcontractors include the full amount before CIS deductions. Our builders and CIS guide explains how CIS fits with MTD.
Key dates
If your qualifying income for 2025 to 2026 is over £30,000, GOV.UK’s published update periods give these dates for your first MTD year, on standard update periods:
- 6 April 2027: MTD starts and your digital records begin
- 7 August 2027: first quarterly update (6 April to 5 July 2027)
- 7 November 2027: second quarterly update (6 April to 5 October 2027)
- 7 February 2028: third quarterly update (6 April 2027 to 5 January 2028)
- 7 May 2028: fourth quarterly update (6 April 2027 to 5 April 2028)
- 31 January 2029: tax return and tax bill for 2027 to 2028
Sources: Send quarterly updates and Submit your tax return, GOV.UK. See our MTD quarterly deadlines 2027 to 2028 page for calendar update periods, and penalty points for late updates.
Free MTD deadline calendar
Add these dates to your phone or computer calendar. No email address or sign-up needed. Download the MTD key dates calendar (.ics)
What kind of software you’ll need
HMRC doesn’t provide software. GOV.UK says yours must create digital records, send quarterly updates and submit your tax return. Some software creates records itself; bridging software connects to records you already keep, such as spreadsheets. If you invoice from a job management app, check whether it can create MTD digital records or link to software that does. HMRC’s find software tool lists products that have been through its recognition process. We don’t recommend particular products.
Cash and card takings
Cash jobs go into your digital records the same as card and bank payments. If you take card payments through a reader that pays out after fees, GOV.UK says to record the full amount and the fee separately.
Tip
Materials you charge customers for are part of your turnover. Look at the turnover figure on your last Self Assessment return, plus any property income. Turnover before expenses is the figure the MTD test uses.
Questions people ask
Do I pay tax every quarter?
No. Quarterly updates are summaries of income and expenses. GOV.UK says MTD won’t change the way you pay tax or the dates payments are due.
Do I need separate records if I have two businesses?
Yes. GOV.UK says each sole trader business needs its own digital records and quarterly updates. Its example is an electrician who is also a driving instructor.
Next steps
- Work out your qualifying income: the £30,000 threshold explained
- How to sign up for Making Tax Digital
- MTD quarterly updates explained
- Allowable expenses for sole traders
- How to write an invoice
- The VAT registration threshold explained
- How much tax to set aside
Sources
All checked on 19 October 2026.
- Find out if and when you need to use Making Tax Digital for Income Tax (updated 26 March 2026)
- Work out your qualifying income for Making Tax Digital for Income Tax (updated 11 September 2026)
- Create digital records (updated 16 July 2026)
- Send quarterly updates (updated 16 October 2026)
- Submit your tax return (updated 16 July 2026)
- Choose the right software for Making Tax Digital for Income Tax (updated 13 July 2026)
- Find software that works with Making Tax Digital for Income Tax
- Self-employment (full) notes 2026 (SA103F Notes), HMRC
- Expenses if you’re self-employed
- Simplified expenses if you’re self-employed: vehicles
- What you must do as a Construction Industry Scheme (CIS) subcontractor
- What you must do as a Construction Industry Scheme (CIS) subcontractor: Get paid