From April 2026, self-employed workers operating under the Construction Industry Scheme (CIS) will be required to use HMRC-approved software to manage and submit their payroll and tax records.

If you are completing your own Self Assessment tax return, please make sure you are aware of the latest HMRC requirements and upcoming changes so that you remain compliant and don’t miss out on any rebates you may be entitled to.

If you are using an accountant, please check in with them to make sure they are fully up to speed with the current CIS rules and are able to assist you correctly.

What is Making Tax Digital (MTD)?

MTD requires CIS subcontractors and sole traders to:

• • Keep digital records of income and expenses
  • Use HMRC-approved software to submit tax information
  • Move from annual tax returns to quarterly digital updates

Currently, CIS returns are already submitted digitally, but MTD for introduces extra digital reporting requirements specifically for CIS subcontractors.

MTD Deadlines for Subcontractors

From April 2026, if you are a CIS subcontractor with annual income over £50,000, you must comply with MTD Making Tax Digital for ITSA. From April 2027, the threshold lowers to £30,000. This means you will need to:

• Keep digital records of invoices, expenses, and payments
• Submit quarterly updates to HMRC using MTD-compliant software