Subbies
Sorted
MTD COMPLIANCE FOR BUSY SUBCONTRACTORS & TRADESPEOPE
TAKING THE STRESS OUT OF COMPLYING WITH MAKING TAX DIGITAL (MTD).
SUBBIES SORTED WILL REDUCE THE BURDEN OF COMPLYING WITH MTD, ALLOWING YOU TO FOCUS ON YOUR BUSINESS AND ENJOY YOUR FREE TIME.
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WHAT IS MAKING TAX DIGITAL (MTD)
WHAT IS MTD?
Making Tax Digital (MTD) for Income Tax is a new system for the self-employed and landlords to report their income and expenses to HMRC. It represents the biggest change to the UK tax system in over 30 years. From 6 April 2026, individuals with income above the qualifying threshold must comply with MTD. Under MTD, an individual must: - Keep digital records of income and expenses. - Submit quarterly updates to HMRC using an approved software.
WHAT IS QUALIFYING INCOME?
Qualifying income is the total amount you earn from self-employment and/or property rental before expenses are deducted. For subcontractors, this includes income from Constructor Industry Scheme (CIS) work or other self-employed jobs. If CIS is deducted before you are paid, you must add it back to your income to determine whether you are above the MTD threshold.
WHAT ARE THE THRESHOLDS?
If your qualifying income was over £50,000 during 6 April 2024 to 5 April 2025, you must start preparing returns under MTD from 6 April 2026. If your qualifying income was over £30,000 during 6 April 2025 to 5 April 2026, you must start preparing returns under MTD from 6 April 2027. If your qualifying income was over £20,000 during 6 April 2026 to 5 April 2027, you must start preparing returns under MTD from 6 April 2028.
WHAT ARE THE DEADLINES?
Once you qualify for MTD you will need to submit quartely updates to HMRC covering income and expenses for the three month period. The standard update periods and deadlines are: PERIOD DEADLINE 6 Apr - 5 Jul 7 Aug 6 Jul - 5 Oct 7 Nov 6 Oct - 5 Jan 7 Feb 6 Jan - 5 Apr 7 May In addition, a final declaration (which replaces the self-assessment tax return) must be submitted by 31 January following the end of the tax year, along with payment of any tax due.
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WHY CHOOSE US
Subbies Sorted was founded by an award-winning Chartered Accountant with over a decade of industry experience.
Having worked alongside major contractors, house builders and a wide range of subcontractors, we offer every client access to a deep pool of knowledge and expertise.
Our goal is to take the burden of complying with the government’s new Making Tax Digital (MTD) legislation, proving a tailored, competitively priced service designed around what you need from your accountant.
By allowing us to take the reins of your MTD requirements, you gain piece of mind knowing everything is being completed to the highest standard, submitted within HMRC deadlines and calculated so you pay the correct amount of tax.
This gives you freedom to focus on running your business and enjoying your downtime whilst gaining valuable insights into your numbers with expert support at your side.
What is a subcontractor (Subbie)? A subcontractor is a self-employed professional who works for another business rather than directly for the client. In construction, this could include a: Plumber, electrician, bricklayer, carpenter, roofer, plaster, painter, flooring specialist, landscaper or general tradesperson. As a subcontractor, you are responsible for your own taxes, record-keeping, and often your own tools and transport. Subcontractors: - May work under the Construction Industry Scheme (CIS). - Invoice for their time or services instead of being on PAYE. In short, a subcontractor is a self-employed worker hired by another business to complete part of a project.
What if I'm a tradesperson that doesn't perform subcontract work? I.e. work for private clients Even if you take on jobs directly for homeowners or businesses without going through a main contractor, you’re still self-employed and need to keep your tax and records in order. Subbies Sorted can still help! We’ll handle your paperwork, make sure you stay compliant with HMRC, and take the stress out of running your business, so you can focus on doing what you do best.
What size of business does Subbies Sorted look after? Subbies Sorted focuses on self-employed individuals with a turnover of less than £90,000, who are not VAT registered.
AM I THE RIGHT CLIENT?
Subbies Sorted was created for self-employed individuals, below the VAT threshold (£90k) who are sub-contractors and tradespeople who want to make the process of complying with MTD as simple as possible.
We understand that after a long week on site or in properties, the last thing most people want to do is complete quarterly updates for HMRC.
That’s where we step in, taking care of your digital record-keeping so you can enjoy peace of mind and focus on what you do best.
All you need to do is routinely take pictures of your paperwork via an app, and we will do the rest.
We even have solutions for those who don’t want to upload documents themselves and would prefer us to handle this on their behalf.
Our goal is to make complying with MTD as easy as possible.
THE ROADMAP
At Subbies Sorted, we make your journey from sign-up to final submission as simple as possible. By using the latest technology and keeping everything transparent, you’ll always know exactly where you are in the process.
Below is a clear roadmap showing what happens when you first join us, the ongoing support you receive throughout the MTD process, and how we prepare and submit your final declaration at the end of the tax year.
Onboarding
Initial call
Engagement Agreed
On boarding call
Return sent for approval and submitted
Ongoing
MTD Return Prepared
Data captured and analysed
Scan and send documents
Additional income collated
Annually
Final declaration prepared
Return and documents sent for approval
Approved, submitted and tax paid
FEES
We know how important it is to trust who you’re working with. That’s why Subbies Sorted keeps pricing simple and fair. Our three-tier system makes it easy to choose the level of support that suits where you are in your journey, with reasonable, competitive rates that give you confidence from the start.
COMPLIANCE
Reliable. Simple. Compliant.
Focused on accuracy and compliance, this tier ensures your books are kept up-to-date and you remain (MTD) compliant with minimal fuss.
Ideal for businesses who just need their numbers right and deadlines met.
From £50 a month
ACCOUNTANT
Insightful. Supportive. Efficient.
Combines compliance with proactive accounting support and more regular communication.
Ideal for those who want clearer insights into their business finances and help understanding the numbers.
From £75 a month
PARTNER
Strategic. Proactive. Growth-focused.
A more hands-on service that provides tailored financial insight and planning support, helping you make informed decisions with confidence.
Ideal for established businesses and those looking for deeper financial understanding to create wealth and to drive growth.
From £100 a month
COMPARE
COMPARE OUR PLANS
INCLUDED IN THE MONTHLY FEE
COMPLIANCE
ACCOUNTANT
PARTNER
Quarterly MTD report and submission to HMRC
Monthly categorisation of receipts and expenses
Price promise
Telephone support
Video call support
Annual financial review and feedback
Quarterly review and feedback
E-mail document
Document and strategy call
Training on data capture software
The preparation of the final declaration can be added to each plan from as little as £10 a month.
Each plan includes our price promise which guarantees you only pay for what you need.
Anything not included in the above can be discussed at the initial call and factored into the price to give you a package which suits the needs of your business.
Fees from
£50 a month
£75 a month
£100 a month
E-mail support
Quarterly tax estimate
Quarterly KPI analysis
FREQUENTLY ASKED QUESTIONS
When must I comply with MTD? Once your income reaches over the relevant threshold in the tax year, then you must start submitting quarterly returns under MTD.
What if I miss a payment deadline? Tax is payable by the 31st January following the end of the tax year. Late payments may lead to penalties as follows: If the tax is unpaid 15 days after the deadline, a penalty of 3% of the unpaid tax is added to the balance. If the tax is still unpaid 30 days after the deadline, a further 3% is charged on the remaining amount. After day 30, an ongoing penalty of 10% per year, charged daily on the outstanding amount, is applied. These are in addition to interest that accrues.
I don't want to scan in income and reciepts. HMRC mandates that you keep digital records of all your income and expenditure however, we can do this for you. Please get in touch for more information.
What are the thresholds? If your qualifying income was over £50,000 during 6 April 2024 to 5 April 2025, you must start preparing returns under MTD from 6 April 2026. If your qualifying income was over £30,000 during 6 April 2025 to 5 April 2026, you must start preparing returns under MTD from 6 April 2027. If your qualifying income was over £20,000 during 6 April 2026 to 5 April 2027, you must start preparing returns under MTD from 6 April 2028.
What if my record keeping doesn't comply with MTD? HMRC can charge a £3,000 penalty for individuals who do not comply with the MTD rules.
What services does Subbies sorted offer? We can help you with: - Checking if and when MTD ITSA will apply to you. - Registering you for MTD for Income Tax when needed. - Providing and training you on software that captures receipts and expenses. - Digital record-keeping and ongoing bookkeeping. - Preparing and submitting quarterly updates. - Preparing and submitting your final declaration. - Reminding you of any payment deadlines and amounts due. - Explaining what HMRC’s updates actually mean in plain English. - Providing you comfort that you are complying with the ever changing UK tax legislation and are paying the correct amount of tax. - Most other accountancy or taxation matters.
What am I required to do under MTD? - You must maintain digital records of your income and expenses. Paper records no longer meet the legislative requirements. - You must submit quarterly updates to HMRC within just over a month of the end of each quarter, and a year-end tax return after the end of the tax year. These submissions must be made using compatible software that can access HMRC’s application programming interfaces (API) platform.
Do I still need to submit a self assessment tax return? The self-assessment tax return has now been replaced with a final declaration which: - Brings together all your income sources (self-employment, property, employment, pensions, savings, etc.), - Confirms your tax liability for the year, and - Is submitted via MTD-compatible software. Subbys sorted can prepare this on your behalf from as little as £10 a month.
I'm not a sub-contractor or tradesperson. Can you still help? Whilst we specialise in MTD for sub-contractors and tradespeople we have more than enough experience to help you as well. Please get in touch.
What if I miss a submission deadline? HMRC now operate a points based system of penalties. You accumulate penalty points for missing submission deadlines. For annual returns: At 2 points, you are charged a £200 penalty. Each further late annual return triggers another £200 penalty. For quarterly submissions: You get a point for each missed quarterly update. At 4 points, you are charged a £200 penalty.
Can I make the submissions myself? Yes, so long as they comply with the rules of MTD and is done through a HMRC approved software.
Can you help me comply with MTD for property income too? Yes of course. Please get in touch.
When do my points get reset? Points are reset to zero if: - You meet all deadlines for 24 months (annual filers) or 12 months (quarterly filers), and - HMRC has received all submissions due in the previous 24 months.
How do I calculate my qualifying income? Your qualifying income is your income from all self-employment and property income before deducting any expenses. To calculate this: 1) Start with your income from self-employment. If you are CIS registered and suffer CIS at source, then the CIS suffered needs to be added on to your income to calculate your gross income. 2) Add any property income you may have. 3) Add these figures together and check if they are above the thresholds. You do not need to include income from PAYE, pension income, savings interest, or dividends. EXAMPLE: You receive £36k into your bank account from CIS income. You suffered £9k CIS deducted at source, which must be added back, giving a total self-employment income of £45k. This is below the £50k threshold. However, if you also received £9k in property income, your gross income would total £54k, which is above the threshold. You would need to complete MTD returns on a quarterly basis for both your self-employment and rental income.
How much do you charge?
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