Emergency call-outs, cash jobs, materials markup and a van full of tools. Here's how Making Tax Digital for Income Tax applies to plumbers, what records you need, and when it starts for you.
MTD for Income Tax is measured on gross income, your total takings before expenses. Once marked-up parts pass through your invoices, plumbers cross £50,000 sooner than they expect.
Emergency call-outs paid in cash are taxable income just like a carded job. The upside of digital records is that logging a payment on your phone the moment you're paid means nothing slips through by the end of the quarter.
Your annual Self Assessment return is replaced by four short quarterly updates and a year-end final declaration, all through recognised software.
Snap merchant receipts on the app as you buy, so a parts run doesn't turn into paperwork at quarter-end.
The parts you buy and recharge flow through your takings. Record what you charge and what you paid so you're taxed only on the difference.
Late-night emergency jobs are still taxable income. Log them on the app on the doorstep and your records stay complete.
Fuel, servicing, tools and replacement kit are all deductible. Keep them logged and your expense total stays accurate.
Also doing gas work? The registration fee is a business expense, and it all sits in one set of records. See our gas & heating engineers guide.
You're under a sink, 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 parts as you go, snap your receipts, and send your first quarterly update in minutes.
