Boiler installs with a big materials bill, service calls, warranty callbacks and a winter rush. Here's how Making Tax Digital for Income Tax applies to gas and heating engineers, and when it starts for you.
MTD for Income Tax is measured on gross income before expenses. With boiler and parts costs passing through your invoices, install-heavy engineers cross £50,000 quickly.
The materials you supply for an install pass through your takings, so a run of installs pushes your gross turnover up fast, even though the margin is on the labour. That is exactly the figure the MTD threshold looks at.
Your annual Self Assessment return is replaced by four short quarterly updates and a year-end final declaration, all through recognised software.
Log the merchant and manufacturer invoices as you buy so your install materials are matched to the right quarter.
Registration and assessment costs are business expenses. Keep them recorded and your deductible total stays complete.
Record the boiler and parts you buy against the job. Big outlay in a quarter is normal, and your profit reflects the real margin.
Service calls are steady labour income; installs are lumpy. Both roll into one quarterly update automatically.
Parts under warranty and callback labour are all part of your records. Keep them logged so nothing is missed against a job.
Between a service call and an install, the last thing you want is a spreadsheet. Clear Books lets you keep records from your phone and gives HMRC exactly what they need.
Record installs and service calls as you go, snap your receipts, and send your first quarterly update in minutes.
