Big material orders passed to the client, deposits, other trades to coordinate and cash flow to manage. Here's how Making Tax Digital for Income Tax applies to fitters, and when it starts for you.
MTD for Income Tax is measured on gross income before expenses. When you buy the units and appliances and recharge them, that turnover counts, so most fitters are well in scope.
Even if most of that is units and appliances you bought in, it all counts as gross income for the threshold. Recording the matching purchases as expenses is what keeps your tax based on the real margin.
Your annual Self Assessment return is replaced by four short quarterly updates and a year-end final declaration, all through recognised software.
Record deposits and supply orders as they happen so a big order in one quarter is matched to its income cleanly.
Units and appliances you buy and recharge count as income. Record the purchases so you're taxed on the fitting margin.
Deposits fund the supply order. Recorded in the right quarter, they keep your figures and your cash flow clear.
Bringing in an electrician or plumber? Their invoice to you is an expense. Keep it clear so your turnover isn't overstated.
Work referred from a showroom is income like any other. Record it against the job with its own costs.
When thousands of pounds of units pass through your books, you need the margin to be clear. Clear Books keeps income and purchases matched and gives HMRC exactly what MTD requires.
Record deposits, supply orders and other trades as you go, and send your first quarterly update in minutes.
