Making Tax Digital for tilers: what changes from April 2026

TL;DR: Making Tax Digital for Income Tax Self Assessment (MTD ITSA) applies to self-employed UK tilers 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: records must be digital from the point of capture, you submit four quarterly summaries of income and expenses to HMRC each year on top of your annual declaration, and you need HMRC-compatible filing software. The underlying tax calculation does not change. Same money, different rhythm. Tilers face specific wrinkles around tile and adhesive materials cost cycling, the switch between day-rate and price-per-square-metre revenue, seasonal new-build versus domestic-renovation income splits, and CIS deductions where applicable. 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.

If you work as a self-employed tiler or sole-trader in the UK, the MTD ITSA headline is straightforward. Mandatory digital records and quarterly submissions 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 storage unit alongside your tiling 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 expenses must be held in a structured digital format throughout the year. A spreadsheet can work if it pairs with MTD-compatible bridging software. Cloud accounting handles both natively. Pulling tile receipts and adhesive invoices out of a work bag in January is no longer a compliant approach.
2. Four quarterly summary submissions per tax year, plus a year-end final declaration. Quarterly updates are lightweight by design: total income by category, total expenses by category. The tax calculation still happens at year-end. The rhythm changes, not the complexity.
3. HMRC-compatible filing 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 bridging software (typically £30–£50 per year).

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. Tiling has layers that matter specifically for quarterly reporting.

Day-rate versus price-per-square-metre revenue. Some tilers charge a day rate, particularly on new-build contracts where the programme is managed by a principal contractor. Others price domestic jobs by the square metre, which means income per job varies considerably with room size, tile format, and surface complexity. Under MTD, both approaches require the same thing: recording each payment as income in the period it is received. But the pattern of income across quarters will look different depending on which mix of work you carry in a given period. A quarter heavy on new-build day-rate work may show very steady income. A quarter heavy on domestic bathroom renovations may show larger lumps. Both are fine. Quarterly figures are not required to be even.

Tile and adhesive materials cost cycling. Tilers buying for a large new-build contract or a run of bathroom renovations often buy tiles, adhesive, grout, and fixing materials ahead of invoicing the client. Under MTD, materials costs are generally recorded as a business expense when purchased. If you buy £800 of adhesive and grout in the last week of Q1 for a job that runs through Q2, that expense lands in Q1. Your Q1 expenses may look higher than your Q1 income for that job. That is expected and correct. Quarterly figures are not required to balance per job. The full-year view is what HMRC uses for tax.

Tile breakage variance. Cutting tiles for awkward angles, wet areas, and feature work always produces off-cuts and breakage. The actual materials cost on a job includes this variance. Recording what you paid for materials (including expected wastage built into your materials order) as a business expense is the correct approach. You do not need to justify each broken tile; you need to record what you paid suppliers and carry delivery notes.

Seasonal income split: new-build versus domestic renovation. New-build tiling programmes tend to be managed by the principal contractor's programme and can run through winter without the weather-driven gaps that affect external trades. Domestic renovation work, particularly kitchen and bathroom tiling, tends to slow in the post-Christmas period and peaks in spring and autumn. A quarterly income figure for Q3 (October to December) may reflect a quieter domestic pipeline even if new-build work is steady. This is not a compliance problem. HMRC expects quarterly figures to be uneven.

CIS deductions. If you work as a subcontractor on new-build or larger refurbishment projects where the principal contractor operates under the Construction Industry Scheme and deducts 20% at source, your income record for MTD purposes is your gross invoiced amount, not the net after the CIS deduction. The CIS deduction you have suffered during the year is offset against your year-end tax bill. CIS is its own scheme with its own rules. 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 tiler:

• Materials: tiles, adhesive, grout, tile spacers, backer boards, screws and fixings, silicone sealant, primers, membrane for wet areas, edge profiles.
• Tools and equipment: tile cutters, wet saws, notched trowels, grout floats, levels, suction cups, mixing paddles. Items replaced regularly and below the capital threshold.
• Plant hire: larger tile saws hired per job, dust extraction equipment if hired.
• Vehicle costs: van insurance, fuel, servicing, road tax. If you use HMRC's flat mileage rate (45p per mile for the first 10,000 miles, 25p thereafter), record mileage rather than actual vehicle costs.
• Protective equipment (PPE): knee pads, safety glasses, dust masks, steel-toe boots, gloves.
• Insurance: public liability, employers' liability if labour is engaged, tools and equipment cover.
• Subcontractor costs: if you bring in a second tiler or a labourer, their invoices are a business expense. CIS deduction rules apply if they are CIS subcontractors.
• Professional fees: accountancy, trade body memberships.
• Phone and communications: the business proportion of your mobile.
• Training and certifications: any trade-specific certifications, CSCS card renewal, first aid.
• Software: accounting software subscriptions, invoicing tools.
• Bank charges: business account fees, card processing costs.

You report quarterly totals for each category, not individual receipts. The paperwork stays in your records.

The tax year runs 6 April to 5 April. Under MTD ITSA, quarterly periods are fixed:

• Q1: 6 April to 5 July (submission deadline: 7 August)
• Q2: 6 July to 5 October (submission deadline: 7 November)
• Q3: 6 October to 5 January (submission deadline: 7 February)
• Q4: 6 January to 5 April (submission deadline: 7 May)
• Final declaration: 31 January of the following year

Ten minutes per quarter, once your system is set up, is a realistic time for the submission itself. The ongoing work is in keeping your income and expense records current throughout each quarter, not in the 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 MTD quarterly submissions natively. Best fit: tilers 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; bridging software (typically £30–£50 per year) submits the quarterly totals to HMRC in the MTD-compliant format. Best fit: tilers with simpler finances, sole-trader operations with clear expense categories, and those already comfortable maintaining their own records.

Hand it to your accountant. Your accountant manages the quarterly submissions from the records you supply. The incremental cost for quarterly submissions may be reasonable if they already handle your year-end return. 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 approach 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, adhesive and tile receipts gathered approximately, a spreadsheet started and not kept up), 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 remove 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 income as it arrives. Every payment, whether invoice settled by bank transfer or cash on completion, is income in the period received.

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.

The worst route is no route. HMRC's MTD penalty system accumulates points for missed quarterly submissions, leading to financial penalties once the threshold is reached. The penalties apply whether you are unaware of the requirement or simply delayed.

For the document side of running a tiling business, including client contracts, site risk assessments, scope of works, materials waste logs, and sign-off documents, see essential business documents for UK tilers.

LaunchKit's tiler MTD Compliance Kit is a structured spreadsheet workbook with income categories relevant to tiling work, expense categories covering tiles, adhesive, grout, tools, and subcontractor costs, and quarterly summary tabs ready to pair with MTD-compatible bridging software. £16.99.

The kit pairs with the tiler business documents bundle (£19.99) if you also want client contracts, site risk assessments, materials waste logs, 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.