Making Tax Digital

What Construction Subcontractors Need to Know

Keyforge Ltd and One Click Accountant Ltd explain the changes and how we're here to help

If you're a self-employed subcontractor working in construction, you've probably heard about Making Tax Digital (MTD). It sounds complicated, but the reality is straightforward – and we're here to make sure you're ready.

Two construction workers wearing yellow helmets and reflective vests standing and talking at a construction site, with dirt ground and construction materials in the background.

What is Making Tax Digital?

Making Tax Digital is HMRC's initiative to modernise the tax system by moving away from paper records and manual submissions. Instead, everything happens digitally through compatible software.

For self-employed workers, including construction subcontractors, MTD affects how you submit your Self Assessment tax returns.

When does it affect you?

From April 2026, if your gross income is over £50,000 a year, you'll need to:

  • Keep digital records of your income and expenses

  • Submit quarterly updates to HMRC through MTD-compatible software

  • File your final Self Assessment return digitally

If your income is under £50,000, you have more time – but it's worth getting ready now.

Two individuals exchanging documents at a wooden table with a calculator, pen, and other papers visible.

What do you need to do?

The good news is that if you work with Keyforge Ltd and One Click Accountant Ltd, you don't need to worry about the technical details. Here's what happens:

1. Digital record-keeping 

Instead of keeping paper receipts and spreadsheets, your income and expenses are tracked in MTD-compatible software. If you're already using our systems, you're likely already set up.

2. Quarterly updates 

Four times a year, a summary of your income and expenses is sent to HMRC. This isn't a tax payment – it's just keeping HMRC informed throughout the year.

3. End of year return 

You'll still complete a Self Assessment return at the end of the tax year, but it will use the information from your quarterly updates.

Construction workers in safety gear working near a large crane on a construction site, with a busy street and scooter traffic in the background.

Why the change?

HMRC wants to reduce errors and make it easier to spot problems early. By receiving regular updates throughout the year, they can help you avoid unexpected tax bills or issues down the line.

Think of it like checking your bank balance regularly rather than waiting for an annual statement – it gives you better control.

What if I'm not confident with technology?

This is where we come in. At Keyforge Ltd and One Click Accountant Ltd, we handle the digital submissions on your behalf. You continue to provide us with your information the same way you always have, and we take care of the MTD requirements.

You don't need to be a tech expert. You just need to keep doing what you're already doing – tracking your jobs, keeping your receipts, and sending us your information.

Common questions we're hearing

  • No. MTD is about how you report your income, not how much tax you pay. Your tax bill is based on your actual earnings and expenses, same as always.

  • HMRC can issue penalties for late submissions, but these are avoidable. When you work with us, we manage the deadlines for you and make sure everything is submitted on time.

  • Not if you're working with us. We use MTD-compatible systems as part of our service. There's no need for you to purchase additional software.

  • That's normal in construction. MTD actually works well for this because it tracks your real income throughout the year rather than relying on estimates. If you have a quiet quarter, your quarterly update will reflect that.

Laptop keyboard with a yellow sticky note that says 'Don't forget to PAY TAXES' and a crumpled receipt paper held with a paperclip on a white surface.

What we're doing to prepare

Keyforge Ltd and One Click Accountant Ltd are already MTD-ready. Our systems are fully compatible with HMRC's requirements, and we've been working with clients to ensure a smooth transition.

We're:

  • Upgrading our software to ensure full MTD compatibility

  • Training our team on the new requirements

  • Contacting clients individually to discuss their specific situations

  • Providing guidance and support every step of the way

What you should do now

If you're already working with us, we'll be in touch to discuss your MTD readiness. If you're managing your own tax affairs and worried about the changes, now is a good time to consider whether professional support would give you peace of mind.

The key thing to remember is this: MTD is a change in process, not a fundamental change to how tax works. You'll still earn money, track your expenses, and pay tax on your profits. The difference is the reporting happens digitally and more frequently.

A person sitting at a white desk with a silver laptop, clasping their hands together near the trackpad, wearing a watch on their wrist, and a small green plant in the top left corner.

Need help or have questions?

Making Tax Digital doesn't need to be stressful. At One Click Accountant Ltd and Keyforge Ltd, we specialise in supporting construction subcontractors with exactly these kinds of changes.

If you have questions about MTD, your tax obligations, or how this affects your specific situation, get in touch. We're here to make sure you're ready and that the transition is as smooth as possible.

About One Click Accountant Ltd and Keyforge Ltd

We provide specialist accounting, payroll, and compliance services to construction subcontractors and small businesses across the UK. Our expertise in the Construction Industry Scheme (CIS) and self-employment taxation means we understand the unique challenges you face – and we're here to help you navigate them.