MTD Software for Joiners (UK, 2026): Quarterly HMRC Submissions Without the Hassle
Written by Tom Ellis · Senior Trades Editor
Last updated: 7 November 2026
Quick Answer
What MTD for Income Tax means for joiners
Making Tax Digital for Income Tax Self Assessment (MTD ITSA) fundamentally changes how sole-trader joiners and cabinet makers report their income to HMRC. Instead of only filing a return each January, you will send four quarterly updates during the tax year, followed by your tax return (previously called the final declaration) by 31 January after the year ends. Each quarterly update carries cumulative totals of your income and allowable expenses since 6 April, by category, built from your digital records and sent from compatible software. No tax is paid with the quarterly updates.
For joiners, this is both a challenge and an opportunity. On one hand, four submissions per year sounds like more admin. On the other, it forces a discipline that good joiners already know works in other parts of the business: keeping records job by job, knowing your margins, and never scrambling for receipts in January.
The joinery trade is particularly well suited to digital record keeping because costs are highly specific to individual projects. Bespoke furniture, fitted kitchens, and architectural joinery all carry distinct material costs, and separating them by quarter is far easier when you log each purchase at the point of buying rather than at the end of the tax year.
HMRC mandates that the software you use must hold bridging or API capabilities to submit directly to HMRC. Using a spreadsheet alone will not meet the requirement unless you use a bridging tool on top of it.
Thresholds, deadlines, and key dates
HMRC is rolling out MTD ITSA in three stages based on qualifying income: your self-employment and property turnover before expenses (CIS income counts gross, before deductions). You must comply from the tax year that begins in April of the relevant year:
- April 2026: joiners with qualifying income over £50,000 in 2024-25 must use MTD-compatible software.
- April 2027: the threshold drops to £30,000 (based on 2025-26 income).
- April 2028: the threshold drops again to £20,000 (based on 2026-27 income), bringing the majority of self-employed joiners into scope.
The quarterly submission windows for the 2026/27 tax year (April to April) are:
- Quarter 1: 6 April to 5 July, submitted by 7 August
- Quarter 2: 6 July to 5 October, submitted by 7 November
- Quarter 3: 6 October to 5 January, submitted by 7 February
- Quarter 4: 6 January to 5 April, submitted by 7 May
You still send an update for a quarter with no income (a nil update), and if you spot a mistake you correct it in your next update.
Your tax return must be sent through MTD-compatible software by 31 January following the end of the tax year, the same deadline as before, and payment dates are unchanged (31 January and 31 July). HMRC pre-fills PAYE, pensions and CIS deductions. Missing quarterly deadlines earns penalty points under HMRC's points-based regime (if you join in April 2027, Budget 2026 announced no points for late quarterly updates in 2027-28, subject to legislation), so setting software to remind you at each deadline is essential.
Joiner expenses that count for MTD
One of the biggest advantages joiners have under MTD is the ability to claim a wide range of legitimate business expenses against their taxable income. Capturing these costs digitally, at the point they occur, means nothing slips through when a quarterly submission comes around. The categories most relevant to joiners include:
- Timber and sheet materials: MDF, plywood, hardwoods such as oak and ash, softwoods, veneers, and engineered boards. These are typically the largest cost category for joinery businesses undertaking bespoke furniture or kitchen fitting work. For joiners buying from merchants such as James Latham or Timbmet, digital invoices can be imported directly into compliant software.
- Fixings and hardware: hinges, drawer runners, locks, handles, screws, and knock-down fittings all count. Receipts from suppliers such as Screwfix, Toolstation, and Hafele can be photographed and categorised immediately.
- Workshop consumables and finishes: sandpaper, abrasive belts, lacquers, stains, oils, adhesives, and sealants are allowable where they are used in the production of joinery for customers rather than for personal use.
- Machine maintenance and repair: servicing table saws, planers, thicknessers, routers, and CNC equipment is a capital or revenue expense depending on the nature of the work. Routine consumables such as blades and cutters are revenue expenses and can be claimed in the quarter they arise.
- Van and delivery costs: fuel, insurance, servicing, road tax, and mileage for site visits, timber collection, and customer deliveries. Many joiners use the HMRC approved mileage rate of 45p per mile for the first 10,000 miles and 25p thereafter. MTD software should log mileage per trip and calculate the allowable amount automatically.
- Specialist tools: routers, domino joiners, biscuit cutters, and other specialist hand tools. Items costing under the annual investment allowance (currently £1 million per year) can be claimed in full in the year of purchase.
Because joiners often carry significant material costs relative to labour, particularly on bespoke furniture and cabinet projects, keeping clear records of which materials were purchased for which job makes it straightforward to match costs to the correct quarterly period. If you buy £4,000 of oak in Q1 for a project that runs through Q2, good software lets you allocate that cost correctly so your quarterly figures are accurate.
CIS deductions and MTD
Many joiners work as subcontractors for main contractors on commercial or residential development sites, which means they operate under the Construction Industry Scheme (CIS). Under CIS, a contractor deducts 20% (or 30% if you are not registered) from your labour payments and pays this to HMRC on your behalf. These deductions are not an expense but a prepayment of your tax liability.
Under MTD, your quarterly updates carry gross income and expenses only: CIS deductions are not part of them. HMRC uses the deductions your contractors report in its tax estimate and pre-fills them in your tax return, where they are offset against the tax you owe. Any CIS refund comes once a year with the tax return (an in-year refund is only possible if you stop trading). It still pays to record the deduction from each contractor's payment and deduction statement, and keep the statements, so you can check HMRC's pre-filled figures.
Joiners who both subcontract for larger firms and take on direct domestic work may have CIS-deducted income alongside gross income. Good MTD software separates these streams clearly, so you can see which income was already taxed at source and which was not. If you are not yet registered for CIS gross payment status, it is worth checking whether you qualify, since it removes the deduction entirely and improves cash flow.
MTD software comparison for joiners (2026)
Not all MTD software is designed with tradespeople in mind. Generic accounting packages work well for office-based businesses but can feel awkward when you are trying to log a timber delivery on site. The table below compares the main options available to self-employed joiners in the UK as of August 2026.
| Software | Monthly cost | MTD submission | Trade-specific features | CIS support | Best for |
|---|---|---|---|---|---|
| Sleepless Tradesman | Free plan includes MTD records; paid plans from £29.99/mo | Prepares quarterly figures (export for submission); direct HMRC submission coming once HMRC approves it | Job-level cost tracking, receipt scan, materials log | Yes | Self-employed joiners wanting one app |
| QuickBooks Self-Employed | £10/mo (Sole Trader plan) | Direct API to HMRC | Mileage tracking, basic expense categories | Limited | Simple sole traders, low expense volume |
| Xero (Ignite plan) | £18/mo ex VAT | Direct API to HMRC | Bank feeds, receipt capture via Hubdoc | Add-on required | Joiners who also run a limited company |
| FreeAgent | £19/mo ex VAT | Direct API to HMRC | Time tracking, project profitability | Yes (contractor mode) | NatWest, RBS, Ulster Bank or Mettle customers (free via bank) |
| Sage Accounting Start | See their site | Direct API to HMRC | Bank reconciliation, standard expense categories | Yes | Joiners with an existing Sage accountant |
Prices shown are indicative (as of October 2026). Check each provider for current promotions. All other providers listed are on HMRC's list of MTD-recognised software; Sleepless Tradesman prepares your figures for you or your accountant to submit; direct submission is coming once HMRC approves it.
QuickBooks Self-Employed
QuickBooks Self-Employed is the entry-level Intuit offering aimed squarely at sole traders. Its Sole Trader plan is about £10 a month, among the cheapest MTD-compatible options, and covers the basics well: bank feed connection, receipt photograph via the mobile app, and a direct API link to HMRC for quarterly submissions. Mileage tracking uses your phone GPS automatically, which is useful for joiners making multiple site visits and timber runs each week. The weakness for joiners is the limited job or project tracking. You can categorise expenses, but you cannot easily see all the costs associated with a particular kitchen or staircase project. If your joinery business is straightforward with few large material orders, it is a cost-effective starting point.
Xero Sole Trader
Xero is a more mature platform with polished bank reconciliation and strong accountant integration. Its cheapest plan, Ignite, is £18 a month ex VAT (new customers get 90% off for the first six months), and every plan is ready for MTD for Income Tax. Receipt capture works through the companion Hubdoc service, which can automatically pull invoices from email inboxes, useful if your timber merchant sends PDF invoices. CIS support requires a higher-tier plan or an add-on, which pushes the monthly cost up for joiners doing a lot of contractor work in London, Birmingham, or Manchester. Xero is a strong choice for joiners who expect to convert to a limited company in the near future, as the upgrade path is straightforward.
FreeAgent
FreeAgent is a UK-native product with a long history of HMRC integration and excellent Self Assessment support. At £19 a month ex VAT it sits at the higher end for sole traders (with 50% off for the first six months), though NatWest, Royal Bank of Scotland and Ulster Bank business account holders, and Mettle customers, get it free. The contractor mode handles CIS deductions well, making it genuinely useful for joiners working across domestic and commercial sites. Project-level reporting allows you to see rough profitability per job, though it is less granular than a dedicated job management app. FreeAgent is a solid choice if you value strong customer support and a UK-focused product team.
Sage Accounting Start
Sage is the stalwart of UK accounting software and Accounting Start (see Sage's site for current pricing) covers MTD submission, bank feeds, and invoicing for sole traders. CIS is built in at this tier. The interface has improved significantly since the cloud-first relaunch, but it remains more accountant-focused than trade-focused. Joiners who already work with an accountant using Sage will benefit from the seamless data sharing. Those running the business themselves may find the setup more involved than the trade-specific alternatives.
How Sleepless Tradesman handles MTD for joiners
Sleepless Tradesman is built specifically for UK tradespeople, which means the expense categories, workflows, and terminology match how joiners actually work rather than how an accountant might categorise a generic business. The accounting module keeps MTD-style digital records and works out your quarterly figures, ready to export as a summary for you or your accountant to submit. Direct submission to HMRC is coming once HMRC approves it. The MTD records (expenses, cash and CIS income, mileage, tax set-aside and quarterly figures) are on the free plan; AI receipt scanning, bills by email and job profit are on the paid plans (Starter £29.99 a month, Premium £59.99).
The materials tracking feature is particularly relevant for joiners. On a paid plan, when you buy £1,800 of oak boards from a merchant in Leeds or Bristol, you can photograph the delivery note or invoice on the spot, tag the purchase to the specific kitchen or wardrobe project it belongs to, and the app categorises it under materials. At the end of the quarter, your quarterly figures are right without any manual reconciliation.
The AI receipt scanner (paid plans) reads invoices from merchants such as Screwfix, Toolstation, Jewson, and independent timber yards, extracting the supplier name, date, and total automatically. You review and confirm, then the cost sits in the right category ready for the next submission. For joiners buying consumables in bulk, this removes the most tedious part of bookkeeping.
CIS deductions are tracked within the app. When a contractor pays you and deducts CIS, you log the gross payment and the deduction amount. Sleepless Tradesman keeps a running total so you know how much tax has already been paid on your behalf, and takes it off your tax set-aside estimate. Your quarterly figures carry the gross income; the deductions are not part of the quarterly update, because HMRC gets them from your contractors and pre-fills them in your tax return.
Quarterly deadline reminders are built in: an email 14 days, 7 days and the day before each deadline. The dashboard shows your running income and expenses for the current quarter so there are no surprises when the submission window opens. The app works on iPhone, on Android (from Google Play) and on desktop, which suits joiners who are on site during the day and prefer to review figures in the evening.
Quick wins: get MTD-compliant fast
- Sign up for MTD-compatible software before your threshold year begins, not in the last few weeks.
- Connect your bank feed on day one so all income and outgoings are captured automatically from the start of the quarter.
- Photograph every timber and materials receipt at the point of purchase rather than collecting paper invoices in the van.
- Register for CIS as a subcontractor if you work for contractors, so your deductions appear on HMRC records correctly.
- Set quarterly submission reminders in your calendar or phone app as backup, even if your software sends reminders.
Methodology and disclosure: Software prices and features were checked against provider websites in October 2026 (QuickBooks prices from a secondary source). Sleepless Tradesman is the publisher of this guide and is included in the comparison table. All other products are included for informational purposes and the guide aims to give an honest assessment of each. MTD thresholds and deadlines are based on HMRC guidance published at gov.uk/guidance/sign-up-your-business-for-making-tax-digital-for-income-tax and are subject to change. Always verify current rules with a qualified accountant or directly with HMRC.
Frequently asked questions
Do I need to use MTD software if I earn under £50,000 as a joiner?
Not yet. The first MTD ITSA threshold is £50,000 of gross self-employment income, applying from April 2026. If your gross income is below £50,000, you continue on Self Assessment until the threshold that captures you: £30,000 from April 2027 or £20,000 from April 2028. However, starting to use MTD-compatible software now removes the rush when your threshold year arrives and helps you build better bookkeeping habits in the meantime.
Can I use a spreadsheet to meet my MTD obligations?
A spreadsheet alone does not meet MTD requirements because it cannot submit returns directly to HMRC. You would need a bridging tool such as MTD-compatible software that reads your spreadsheet and submits the data via the HMRC API. Most joiners find it simpler and less error-prone to use dedicated MTD software from the start rather than maintaining a spreadsheet and bridging arrangement separately.
How do I claim for timber I buy in one quarter but use in the next?
For most sole-trader joiners using the cash basis of accounting (the default for those below the VAT threshold), expenses are recorded in the period you pay for them, not the period you use the materials. If you buy £3,000 of hardwood in Q1, the full cost goes into Q1 even if the furniture is not finished until Q2. If you use traditional accruals accounting, you match costs to the period the related income is earned. Check with your accountant which basis you are using, as it affects how material costs flow through your quarterly updates.
What happens if I miss a quarterly MTD submission deadline?
HMRC uses a points-based penalty regime alongside MTD. Each missed deadline adds a penalty point to your record. Once you reach four points (for quarterly filers), you receive a £200 penalty. Further late submissions while you are at the threshold attract additional £200 penalties. Points expire after a period of compliance. If you joined MTD in April 2026, you get no points for late quarterly updates in 2026-27, and Budget 2026 (28 October 2026) announced the same for people joining in April 2027, for 2027-28. That relief is still to be passed into law, and the updates must still be sent before your tax return. Late tax returns and late payment are still penalised: from April 2027, late payment costs 4% of the tax unpaid at day 15, another 4% at day 30, then 10% a year, and the points system applies to everyone who files a Self Assessment return. The best way to avoid points is to submit on time; if a figure turns out to be wrong, you correct it in your next update.
Does MTD change how CIS deductions work for joiners?
The CIS scheme itself does not change under MTD. Your quarterly updates carry gross income and expenses only; CIS deductions are not part of them. HMRC uses the deductions your contractors report in its tax estimate and pre-fills them in your tax return, where they reduce the tax you owe, just as they did under Self Assessment. Any refund comes once a year with the tax return (in-year refunds are only possible if you stop trading). It is still worth recording the deduction shown on each contractor payment and deduction statement, so you can check HMRC's pre-filled figures.
Ready to sort your MTD records once and for all?
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