Van, tools, materials and a mix of domestic call-outs and contract work. Here's how Making Tax Digital for Income Tax applies to electricians, what records you need, and when it starts for you.
MTD for Income Tax is measured on gross income, your total takings before any expenses. A well-booked domestic and contract round trips over £50,000 quickly.
Because MTD tests gross income, the parts and materials you buy and recharge to customers count towards your total, even though they're not really your profit. That pushes a lot of electricians over the line sooner than they expect.
Your annual Self Assessment return is replaced. You'll keep digital records and send HMRC a short summary of income and expenses each quarter.
Snap receipts on the app as you buy, so a wholesaler run doesn't become a paperwork job at the end of the quarter.
Dozens of small call-outs alongside the odd big contract. One tidy set of records covers both, and your quarterly update just totals it all.
Registration and testing fees are business expenses you can record. Keep them logged and your expense total stays complete.
Recharged parts flow through your takings. Recording materials separately keeps your figures clear and any CIS deductions accurate.
Subcontracting on construction sites? CIS may come off your labour. It still counts towards your tax, recorded and reconciled through MTD.
Doing construction subcontract work too? See our MTD guide for CIS subcontractors.
You're between jobs, not sat at a desk. Clear Books lets you keep records from your phone and gives HMRC exactly what they need, nothing you don't.
Log jobs and materials as you go, snap your receipts, and send your first quarterly update in minutes.
