If you’re working under the Construction Industry Scheme (CIS) and earning over £50,000 a year, there’s a big change coming your way.

From April 2026, HMRC is introducing Making Tax Digital (MTD) for Income Tax — and it will completely change how you report your income.

For many CIS workers, this means moving away from a once-a-year tax return to a much more regular, digital process.

Here’s what’s changing, who it affects, and how to stay ahead of it.

Making Tax Digital is HMRC’s push to modernise the tax system.

Instead of submitting one Self Assessment each year, you’ll need to:

• Keep digital records of your income and expenses

• Use approved accounting software

• Send updates to HMRC throughout the year

The idea is simple: fewer errors, more accurate reporting, and better visibility of your tax position.

You can read HMRC’s full guidance here:
https://www.gov.uk/guidance/using-making-tax-digital-for-income-tax

From April 2026, MTD will apply to:

• Self-employed individuals

• Landlords

• Anyone earning over £50,000 annually

That includes a large number of CIS subcontractors, especially those operating as sole traders.

If that’s you, you’ll be expected to:

• Keep digital records year-round

• Submit quarterly updates to HMRC

• Complete a final end-of-year declaration

And this is just the start — lower income thresholds are expected in future.

Right now, most CIS workers:

• Keep records (sometimes loosely)

• Send everything to an accountant once a year

• File a single tax return

Under MTD, that approach won’t work anymore.

Instead, you’ll need to:

• Track income and expenses consistently

• Submit updates every 3 months

• Stay on top of your records throughout the year

It’s a shift from “sort it later” to “stay on top of it as you go.”

On paper, it sounds manageable.

In reality, CIS workers often deal with:

• Multiple contractors and income streams

• CIS deductions at source

• Irregular projects and payment schedules

• A wide mix of expenses

Trying to keep that organised every quarter, while working full-time on site, is where things can get tricky.

Without the right setup, you could run into:

• Missed deadlines

• Incorrect submissions

• HMRC penalties

This is where having the right support makes all the difference.

Rather than trying to figure it all out yourself, many contractors are choosing to get set up properly now — with systems that do most of the heavy lifting.

Through our accountancy arm, CloudAccountant, there’s a dedicated service designed specifically for CIS contractors preparing for MTD.

It’s built around how you actually work — not how HMRC expects you to.

👉 You can see full details here:
https://cloudaccountant.co.uk/our-services/making-tax-digital-for-cis

The service is designed to take the pressure off, covering everything you’ll need to stay compliant.

This includes:

• Setting up MTD-compliant accounting software

• Keeping your CIS income and expenses organised

• Handling your quarterly submissions to HMRC

• Completing your end-of-year declaration

• Ongoing support when you need it

So instead of worrying about deadlines and admin, you can stay focused on your work.

To comply with MTD, you’ll need to use HMRC-recognised software.

One of the most popular options for contractors is FreeAgent, which allows you to:

• Track income from multiple contractors

• Log expenses easily

• Maintain digital records

• Submit updates directly to HMRC

CloudAccountant can help get you set up properly, with training included so you’re not left figuring it out alone.

If you’d rather not deal with bookkeeping at all, there’s also the option to have it managed for you.

That means:

• Your records are kept up to date

• Everything is organised correctly

• Your submissions are accurate

It’s the easiest way to stay compliant without adding more to your plate.

April 2026 might feel a while away, but leaving it late is where most people get caught out.

Getting set up early means:

• No last-minute stress

• Cleaner, more accurate records

• Time to get used to the new system

• Lower risk of penalties

It also gives you access to support before demand ramps up closer to the deadline.

Making Tax Digital is a big shift for CIS workers.

But it doesn’t have to mean more stress or more admin — as long as you’ve got the right setup behind you.

If you’re earning over £50,000 and want to get ahead of the changes, it’s worth taking a look at the support available.

Learn more about the MTD for CIS service here:
https://cloudaccountant.co.uk/our-services/making-tax-digital-for-cis