Tax, Construction, CIS, MTD

Making Tax Digital for Construction Contractors: What Sole Traders Need to Know

Sole trader contractors in the construction sector are facing two big compliance pillars: the Construction Industry Scheme (CIS) and Making Tax Digital (MTD). Understanding how they interact is essential if you want to stay compliant and in control of cash flow.

How MTD changes life for construction sole traders

From April 2026, many sole traders with turnover above HMRC’s thresholds will need to keep digital records and send quarterly updates under MTD for Income Tax, instead of relying solely on an annual Self Assessment return (gov.uk). For construction contractors, that means every invoice, material cost, and CIS deduction must be captured in MTD‑compatible software.

CIS, deductions and digital records

Under the Construction Industry Scheme, contractors must deduct tax at source from subcontractors and report it to HMRC (gov.uk). As a sole trader subcontractor, those CIS deductions are effectively tax already paid. If they are not recorded correctly in your digital system, you risk overpaying or delaying repayments.

Accurate CIS entries in MTD software can significantly improve your cash flow position.

How Certax Accounting Surbiton can help

At Certax Accounting Surbiton, we specialise in supporting local construction contractors and agencies with joined‑up CIS and MTD planning. We help you choose compliant software, structure your records, and forecast tax so there are no surprises.

Next step: Start your free initial consultation by contacting Andrea and the team. We’ll review your CIS, digital records, and MTD readiness in one straightforward session.

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