Are you in? It’s your takings, not your profit
Add up what customers and contractors paid you for the 2025/26 tax year, using full invoice amounts – labour, paint and paper – before CIS and before costs. If that total (plus any rent from property you let) is over £30,000, MTD applies from 6 April 2027. Over £50,000 and you have been in since April 2026.
Over £50,000
Over £30,000
Over £20,000
planned
Your work in accountant language
What actually happens in your working life, what your accountant and HMRC call it, and what to do about it.
| What happens | Accountant calls it | What you do |
|---|---|---|
| A homeowner pays £1,400 for a lounge and hall, paint included | Turnover | Record the full £1,400, cash or bank transfer. |
| You pay a deposit at the start of a job | Turnover when received (cash basis) | Record deposits when they land, not when the job finishes. |
| You pick up paint and decorating sundries at the trade counter | Allowable expense – materials | Keep the receipt or trade account statement. |
| A contractor pays you for a block of flats, less 20% | Gross turnover + CIS deduction | Record the gross invoice as income and the 20% as tax already paid. |
| Your monthly CIS statements arrive | Tax already paid | Total them – they come off your bill in the final declaration. |
| You buy a paint sprayer or new ladders | Equipment – deductible in the year you buy it (cash basis) | Keep the receipt. |
| You take money out to pay your bills | Drawings – not an expense | It doesn’t reduce your tax. |
| Every three months | Quarterly update | Your software sends HMRC your income and expense totals. |
| After 5 April | Final declaration | Confirm the year; tax (less CIS deducted) is due by 31 January. |
What can a decorator claim?
✓ Usually allowable
- Paint, primers, filler, caulk, wallpaper and paste used on jobs
- Brushes, rollers, trays, dust sheets and masking tape
- Ladders, platforms, sprayers and sanders
- Scaffold or tower hire
- Van running costs or 45p a mile – one method per vehicle
- Overalls, protective masks and gloves
- Public liability insurance
- Advertising and listing fees on trade directory sites
- Business share of your phone bill
✗ Not allowable
- CIS tax deducted from your pay
- Paint for your own home
- Everyday clothes
- Parking fines
- Money you take out for yourself (drawings)
Rules that matter for painters and decorators
CIS for decorators
Painting and decorating on construction work counts under CIS. If you are registered, contractors deduct 20% from your labour; if not, 30%. Your turnover is the gross invoice, and the deduction is recorded separately as tax already paid, set off when you do the final declaration.
Cash jobs count too
Small cash jobs for neighbours and landlords are income like any other. Note them down the same day – HMRC compares decorators’ turnover with similar businesses.
Materials bought for one customer
If you buy a customer’s chosen wallpaper and recharge it, the recharge is income and the purchase is an expense. Keep both records so the job adds up.
Worked example
Steve, a painter and decorator in Norwich (illustrative example)
| Takings (turnover) | £38,600 |
| less Paint, paper and sundries | −£6,200 |
| less Van fuel, insurance and servicing | −£3,600 |
| less Tools, ladders and sprayer | −£900 |
| less Tower and access hire | −£400 |
| less Insurance, advertising and phone | −£1,100 |
| Profit | £26,400 |
| Income tax (estimate) | £2,766 |
| Class 4 National Insurance (estimate) | £830 |
| Total tax for the year | £3,596 |
| Put aside each month | £300 |
Estimate for 2026/27 using England, Wales & NI rates, assuming no other income. Scotland has different income tax bands.
What a quarterly update looks like
A typical quarter for a decorator: list the jobs you finished and the deposits you took, add CIS statements if you do contractor work, photograph trade counter receipts, log your mileage – then submit through your software, or send it to your accountant. A notes app entry after each job makes this a 15-minute task.
| Quarter | Period | Submit by |
|---|---|---|
| Q1 | 6 Apr – 5 Jul | 7 Aug |
| Q2 | 6 Jul – 5 Oct | 7 Nov |
| Q3 | 6 Oct – 5 Jan | 7 Feb |
| Q4 | 6 Jan – 5 Apr | 7 May |
| Final declaration | The whole tax year | 31 Jan following |
Quarterly updates are summaries – they don’t change when you pay. Tax is still due by 31 January (plus payments on account on 31 January and 31 July if they apply to you).
What will an accountant cost?
Typical monthly fees under MTD for Income Tax for: Construction trades (often CIS).
| Option | What you get | Per month |
|---|---|---|
| You do it yourself | MTD-compatible software. You keep the records and send the updates. | £0–£15up to £180 a year |
| Accountant files for you | You keep records in an app; they check them, send the 4 quarterly updates and the final declaration. | £35–£70about £420–£840 a year |
| Full service | They do the bookkeeping too – you share receipts and bank feeds, they handle the rest. | £70–£130about £840–£1,560 a year |
What pushes the price up: matching CIS statements and claiming back tax that was over-deducted; records kept on paper rather than in an app; being VAT-registered; catching up on missed updates or late returns.
What a fixed-fee quote should include
- All 4 quarterly updates and the final declaration (your tax return)
- The MTD software licence – or whether you pay for it separately
- Whether they do the bookkeeping or only check what you’ve recorded
- A reminder before each deadline and an estimate of the tax to put aside
- Whether VAT (20%) is added on top – not every practice charges it
Accountancy fees for your business are an allowable expense, so they reduce your tax bill.
Indicative ranges from published UK price lists, checked October 2026. Not a quote – your fee depends on how many transactions you have, how tidy your records are and where you live.
Questions painters and decorators ask
Do I count the paint I put on the bill?
Yes. The full amount the customer pays is your turnover, and the paint you bought is an expense. Only the turnover decides whether you are in MTD.
I’m on CIS. Do I record what I was paid or what I invoiced?
What you invoiced – the gross figure. The amount the contractor kept is recorded as tax already paid.
Can I claim my overalls?
Yes. Protective clothing and overalls you wear for work are allowable; ordinary clothes are not.
Sources
- Find out if and when you need to use Making Tax Digital for Income Tax – GOV.UK
- Work out your qualifying income for Making Tax Digital for Income Tax – GOV.UK
- Send quarterly updates using Making Tax Digital for Income Tax – GOV.UK
- Find software that works with Making Tax Digital for Income Tax – GOV.UK
- Penalties for Making Tax Digital for Income Tax – GOV.UK
This guide is general information about HMRC’s Making Tax Digital rules as of 26 October 2026, not tax advice. MTD Match is an independent introduction service and is not affiliated with HMRC. Check gov.uk or speak to an accountant about your own situation.