New ITSA Rules for CIS
MTD in 2026 for CIS
As a busy CIS subcontractor, you're already juggling sites, suppliers, and schedules.
Now, imagine streamlining your tax reporting so it fits seamlessly into your workflow, saving you time and reducing stress. That's the promise of the upcoming changes to self-assessment in the UK, and at Fortis Bookkeeping and Accountancy Ltd, we're here to make sure you're ready and confident.
What Are the Changes?
Starting from April 6, 2026, the way many self-employed people – including CIS subcontractors like you – handle their income tax is evolving. This is part of HMRC's Making Tax Digital (MTD) initiative for Income Tax Self Assessment (ITSA). It's designed to make tax simpler and more accurate by going digital.
In simple terms, if your total turnover from self-employment (and any property income) is over £50,000, you'll start this new system in April 2026. If it's between £30,000 and £50,000, your start date is April 2027. And for £20,000 to £30,000, it's April 2028. These thresholds ensure a smooth rollout for everyone.
What Does This Mean for You as a CIS Subcontractor?
Under the current system, you might file your self-assessment once a year. Soon, you'll keep digital records of your income, expenses, and those all-important CIS deductions using compatible software. Then, you'll send quick quarterly updates to HMRC – think of it as sharing bite-sized updates rather than one big report.
Your monthly CIS returns from contractors stay the same, but you'll include those deductions in your quarterly MTD updates. This helps ensure your tax calculations are spot-on from the get-go. No more last-minute scrambles at tax time – just steady, straightforward progress.
Why These Changes Matter
Picture this: With digital tools, errors drop, refunds come faster, and you get a clearer view of your finances year-round. It's about empowering you to focus on what you do best – your trade – while knowing your taxes are handled efficiently. And if you're already using software for invoices or accounts, transitioning could be easier than you think.
Of course, change can feel overwhelming at first. That's where we come in. At Fortis, we specialise in supporting CIS subcontractors like you, explaining everything in plain English and helping you choose the right software that fits your business.
Ready to Get Ahead?
As you consider how these changes align with your growing business, imagine having a team of experts by your side to guide you every step. We're passionate about making tax compliance feel effortless and rewarding.
Let's chat about how Fortis can help you prepare for MTD and beyond. Book your free exploratory call today – no obligations, just valuable insights tailored to your needs.
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