Gross, not net, counts
If a contractor deducts 20% CIS tax, the money that lands in your account is not your income for MTD purposes. Your qualifying income is the gross amount before deductions, plus any other self-employment or property income.
Example: £36,000 paid into your bank after 20% deductions is £45,000 gross. That is over the £30,000 threshold that applies from April 2027.
Dates that apply to you
- 6 April 2026: qualifying income over £50,000
- 6 April 2027: qualifying income over £30,000
- 6 April 2028: qualifying income over £20,000
What to record
- Each payment and deduction statement from your contractors
- Gross amount, CIS deducted and net received
- Materials you supplied, which are not subject to CIS deduction
- Business expenses with receipts
Keep your monthly CIS payment and deduction statements. You will need them to claim the deductions back against your tax bill.
Claiming CIS deductions back
Quarterly updates are summaries of income and expenses. CIS tax already deducted is taken into account when your full tax position is worked out at year end, through your Final Declaration. If too much was deducted, you can get a refund.
Quarterly deadlines
- 6 April to 5 July: update due 7 August
- 6 July to 5 October: update due 7 November
- 6 October to 5 January: update due 7 February
- 6 January to 5 April: update due 7 May
- Final Declaration and any tax to pay: 31 January after the tax year ends
Where Fixxa fits
Fixxa is built with Making Tax Digital in mind. You talk or message on WhatsApp, Fixxa builds the quote or invoice, and Fixxa Pay sends faster payment links. Every job becomes a clean digital record you or your accountant can use for quarterly updates. Fixxa is £19.99 a month or £190 a year, with a 14 day free trial and no card needed. Direct quarterly submissions to HMRC are on the Fixxa roadmap.