Making Tax Digital · Guide · 3 min read
Making Tax Digital checklist for tradespeople
A practical MTD readiness checklist: confirm your start date, reconcile receipts and CIS, agree software with your accountant and keep submission evidence.
You do not need to reorganise your whole business in one sitting. Start with a small, complete set of records and establish who will file them. This checklist is for the admin around MTD for Income Tax; our main MTD guide explains thresholds and dates.
1. Confirm which start date applies to you
Find the relevant Self Assessment return and list each self-employment and property income source. Ask your accountant to confirm the qualifying-income calculation and any exemption. Do not substitute take-home pay or this month’s bank receipts for the required earlier-year figure. Use HMRC’s eligibility checker.
Write the answer at the top of your checklist with the date it was checked. If a return is being amended, flag that to the person advising you rather than quietly reusing an old answer.
2. Choose one test month
Pick a finished month with ordinary work in it. Gather sales invoices, supplier invoices, receipts, bank transactions, credits and relevant CIS statements. Make a list of what is missing. The aim is a reconciled sample, not a folder with hundreds of unexplained photographs.
| Check | Evidence to keep |
|---|---|
| Sales total | Invoices, credits and the correct accounting-period treatment |
| Materials and expenses | Supplier documents matched to entries |
| Money received | Bank receipts matched to invoices |
| CIS withheld | Deduction statements reconciled to the gross payment |
| Unresolved items | A short query list for your accountant |
3. Agree the software chain
Name the software used to keep records and the product that sends quarterly updates and the annual return. They may be the same product, but do not assume they are. Ask the supplier or accountant to confirm the digital-link requirements and whether your particular income sources are supported. HMRC’s software guidance explains what to check.
Test an export before you commit to a process. Open it and find the sample month’s transactions. An export button that creates a file is only the first step: the receiving system needs to interpret it correctly. Keep duplicate imports out of the live bookkeeping records.
4. Allocate the jobs
Missing documents followed up by: [person]
Figures reviewed by: [person]
Quarterly update sent by: [person / agent]
Annual return completed by: [person / agent]
Acknowledgements stored in: [location]
Internal review date: [date]
HMRC deadline checked: [date and source]
Send that list to the person who has agreed to do the work and resolve any gaps. “The accountant has access” is different from “the accountant has agreed to submit”. Put an internal review date ahead of the external deadline so a missing statement does not stop everything at the last minute.
5. Keep CIS and bank receipts distinct
A subcontractor’s invoice and the bank payment can differ because tax was withheld. Keep the contractor’s statement beside the payment and flag differences. If you pay subcontractors as well, keep the contractor-side records separate. See our statement guide. Your accountant should confirm how the records and credits enter the final tax process.
6. Record what was actually submitted
Keep a review note, the relevant period and the software’s acknowledgement. After a correction, retain enough history to understand what changed. “Saved”, “ready” and “submitted” are different states. Treat an error or missing acknowledgement as an unresolved task.
If you are already required to use MTD, do not interpret the 2026–27 quarterly penalty easement as permission to stop keeping records. Check the current rules and agree a catch-up plan if needed.
Where Trade PA can help now
Use Trade PA to organise customers, jobs, invoices and expenses, then agree the compatible filing route with your adviser. Its published status at review still says HMRC production access for MTD for Income Tax is pending. Check the current status; this checklist does not claim Trade PA can send live updates today.
Start with the test month. Once the documents, figures and responsibilities agree, repeat the routine while each week’s work is still easy to remember. General information, not a determination of your personal obligations.
Sources and review
Reviewed 15 September 2026. Provider features and rules can change; check the linked source when making a decision.
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