Making Tax Digital for bricklayers: what changes from April 2026

TL;DR: Making Tax Digital for Income Tax Self Assessment (MTD ITSA) applies to self-employed UK bricklayers in three income steps: over £50,000 from 6 April 2026, over £30,000 from 6 April 2027, and over £20,000 from 6 April 2028. Three real changes land at once: digital records must be created by each relevant update deadline (HMRC recommends creating them as close to the transaction date as possible), you submit four quarterly updates from compatible software each year on top of your Self Assessment tax return using compatible software, and you need compatible software. The underlying tax calculation does not change. Same money, different rhythm. Bricklayers face specific wrinkles around cash income, materials cycling, seasonal weather-driven gaps, and CIS deductions. Quarterly reporting makes all of these more visible than a once-a-year tax return ever did. This post sets out what actually changes, what stays the same, and how to stay compliant without over-engineering your record-keeping.

Current HMRC rule: Each update is calculated by compatible software from digital records and covers cumulative category totals from the start of the tax year to the end of the update period - not only the previous three months. If record keeping and filing use different software, keep a permitted digital link between them; manual re-keying or clipboard transfer is not a digital link. HMRC will not apply penalty points for late quarterly updates in 2026/27, but the updates must still be sent before you submit your Self Assessment tax return using compatible software. Check HMRC digital-record guidance, quarterly-update guidance and HMRC's current MTD journey.

2026/27 simplified mileage rate: For self-employed simplified expenses, HMRC's rate for cars and goods vehicles is 55p per business mile for the first 10,000 miles and 25p per business mile after that. The 55p rate applies retrospectively from 6 April 2026. Check GOV.UK simplified vehicle expenses before relying on the figures.

If you work as a self-employed bricklayer or sole-trader builder in the UK, the MTD ITSA headline is straightforward. Mandatory digital records and quarterly updates in three steps:

• From 6 April 2026, qualifying income over £50,000.
• From 6 April 2027, qualifying income over £30,000.
• From 6 April 2028, qualifying income over £20,000.

Qualifying income is your combined self-employment and property income. If you rent out a van or a tool store alongside your building work, that rental income counts toward the same total.

The three real changes:

1. Digital records from the start, not reconstructed at year-end. Your income and expense records must be created by the relevant update deadline and kept in a structured digital format; HMRC recommends creating them as close to the transaction date as possible. A spreadsheet can work if it pairs with compatible software connected through a permitted digital link. Some cloud accounting software can handle both record keeping and filing; check HMRC's current compatible-software list and the provider's supported features. Paper receipts can still be kept, but an annual-only reconstruction is not enough once MTD applies because the required digital records must exist by each update deadline.
2. Four quarterly updates per tax year, plus a Self Assessment tax return using compatible software. Each update contains cumulative totals for the categories you use, from the start of the tax year to the update-period end. The tax calculation still happens at year-end. The rhythm changes, not the complexity.
3. Compatible software. The existing self-assessment portal will not accept MTD ITSA submissions. You need cloud accounting software with direct MTD submission built in, or a spreadsheet paired with compatible bridging software that supports the workbook and a permitted digital link.

Worth saying plainly: quarterly figures are provisional. They are not mini tax returns. They show HMRC your business is active and give a running picture. No additional tax calculation happens at the quarterly stage.

Most service businesses have relatively clean income and expense categories. Bricklaying has layers that matter specifically for quarterly reporting.

Cash income and invoicing discipline. A proportion of smaller bricklaying jobs are paid in cash at completion. Under MTD, every payment received must be recorded digitally in the period it arrives. Cash jobs that were previously noted loosely and reconciled at year-end now need to be entered at the time. This is not a new tax obligation. Cash income has always been taxable. It is a new recording discipline that catches up with anyone who has been informal about it.

Materials cycling: bricks, sand, cement, and fixings. A bricklayer buying for a large job often buys ahead of invoicing, and sometimes carries unused stock from one job into the next. For quarterly reporting, the question that arises is: when do you record the materials cost? HMRC's approach for sole traders is generally that materials are recorded as a business expense when purchased, not when used. But if you carry significant stock between quarters, your Q1 expenses may look higher than your Q1 income, and Q2 may look the reverse. This is normal and expected. Quarterly figures are not required to be balanced. The full-year view is what matters for tax.

Brick and material waste variance. Real-world bricklaying involves waste: cuts, breakages, mortar over-mix. Recording actual material costs (including expected waste) as a business expense is correct. You do not need to justify every brick; you need to record what you paid suppliers.

Seasonal gaps. Bricklaying income is weather-dependent, so some update periods may add much less income than others. That is not a compliance problem: each cumulative update should still include the records from the tax-year start, even when the total grows slowly during winter downtime.

CIS deductions. If you work as a subcontractor under the Construction Industry Scheme and the main contractor deducts 20% at source, your income record for MTD purposes is your gross invoiced amount, not the net after CIS deduction. The CIS deduction you have suffered during the year is offset against your year-end tax bill. CIS is its own world of scheme rules, verification, and monthly statements. This post does not go deep on it. The point for MTD purposes is: record gross income, not net receipts.

A quarterly update reports income and expenses by category. The categories you will typically track on the expense side for a sole-trader bricklayer:

• Materials: bricks, mortar, sand, cement, lintels, wall ties, damp-proof course, fixings.
• Plant hire: mixer hire, scaffolding costs (if sub-hired, not purchased), hoisting equipment.
• Tools and small equipment: trowels, levels, bolsters, lines. Items replaced regularly and below the capital threshold.
• Vehicle costs: van insurance, fuel, servicing, road tax. If you use HMRC's self-employed simplified-expenses mileage rate (55p per mile for the first 10,000 miles, 25p thereafter), you record mileage rather than actual vehicle costs.
• Protective equipment (PPE): hard hats, steel-toe boots, hi-vis, gloves, dust masks, safety glasses.
• Insurance: public liability, employers' liability if you take on labour, tools and equipment cover.
• Subcontractor costs: if you pay labourers or other trades, their invoices are a business expense. If they are CIS subcontractors, you follow the relevant CIS deduction rules at that point.
• Professional fees: accountancy, any trade body memberships, professional indemnity if held.
• Phone and communications: the business proportion of your mobile and any site communication costs.
• Training and certifications: CSCS card renewal, first aid, any trade-specific qualifications.
• Bank charges: business account fees, any card processing costs.
• Software: accounting software subscriptions, invoicing tools.

Your software sends cumulative totals for each category at every update, not individual receipts. The paperwork stays in your records.

Your software uses either standard update periods or calendar update periods. Each update is cumulative, not a separate three-month return. Under standard periods the coverage runs 6 April-5 July, 6 April-5 October, 6 April-5 January and 6 April-5 April; under calendar periods it runs 1 April-30 June, 1 April-30 September, 1 April-31 December and 1 April-31 March. The corresponding deadlines are 7 August, 7 November, 7 February and 7 May. The tax return is due by 31 January after the tax year.

The time required varies with transaction volume, record quality and the software you use; the continuing duty is to keep accurate digital records and check the software-generated update. The ongoing work is in keeping your income and expense records current, not in the quarterly filing act itself.

Cloud accounting software. Platforms such as Xero, QuickBooks, or FreeAgent at £12–£30 per month. They handle income recording, expense categorisation, mileage tracking, and cumulative MTD updates natively. Best fit: bricklayers with higher turnover, VAT registration, or regular subcontractors on the books who want one system handling most of the financial administration.

Spreadsheet plus bridging software. You maintain your own spreadsheet recording income and expenses by category; compatible bridging software receives the records through a permitted digital link and submits the cumulative update to HMRC. Best fit: bricklayers with simpler finances, sole-trader operations with clear categories, and those already comfortable maintaining their own records.

Hand it to your accountant. Your accountant manages the quarterly updates from the records you supply. The incremental cost for quarterly updates may be reasonable if they already handle your year-end. The catch: your accountant can only submit what you have recorded. You still need to maintain digital records between meetings. Handing everything over in January will not work on a quarterly schedule.

There is no single right answer. The right tool depends on your transaction volume, your VAT position, and how much of this you want to own yourself.

If your records are currently informal (cash jobs noted loosely, materials receipts gathered approximately, a spreadsheet started and abandoned in February), the April 2026 deadline is the hard reset.

1. Separate business and personal money completely. A dedicated business bank account and card make every quarterly step faster and eliminates the most common source of errors.
2. Choose your approach now. Cloud accounting, spreadsheet plus bridging, or accountant-managed. Set it up before the first quarterly period begins.
3. Establish your expense categories consistently. Consistent categorisation from day one of Q1 is easier than restating categories mid-year.
4. Record all cash income as it arrives. Every cash payment is income in the period received. A simple log is sufficient. The discipline is the point.

If you do nothing else before April: open a dedicated business account and start recording every payment the same week it arrives. Everything else cascades from that.

Quarterly updates are still required. HMRC says it will not apply penalty points for late quarterly updates in 2026/27; for later tax years, missed update deadlines can generate penalty points and a financial penalty once the threshold is reached.

For the document side of running a bricklaying business, including client contracts, site risk assessments, scope of works, and sub-contractor agreements, see essential business documents for UK bricklayers.

Check current GOV.UK guidance and HMRC compatible-software information for your own MTD obligations.

The kit pairs with the bricklayer business documents bundle (£19.99) if you also want client contracts, site risk assessments, scope of works templates, and the operational paperwork that sits alongside tidy quarterly accounts.

This article is general guidance, not tax advice. For your specific tax position, CIS status, and income-recognition approach, consult a qualified accountant or tax adviser with construction sector experience.