Making Tax Digital hits the construction sector hard. Self-employed builders and building contractors turning over more than £50,000 must comply from April 2026.
Making Tax Digital hits the construction sector hard. Self-employed builders and building contractors turning over more than £50,000 must comply from April 2026. With large job values, multiple materials purchases per week, and subcontractor payments, builders have some of the most complex expense records of any trade. Getting MTD-ready now avoids a scramble when the first quarterly deadline arrives in August 2026.
Builders juggle materials orders, skip hire, scaffolding rentals, and subcontractor invoices across multiple jobs simultaneously. A shoebox of receipts dumped on an accountant in January is no longer acceptable. You need real-time records.
Self-employed builders in Contractor Kingsbridge (Scotland) earn an estimated £39,900 per year on average — above the April 2027 threshold of £30,000. Tradespeople in Contractor Kingsbridge often also cover Ardwick, Balsall Heath, Bromyard and surrounding areas.
Scottish tradespeople earn slightly below the UK average, with Edinburgh and Aberdeen commanding premium rates. Glasgow has strong demand.
Scottish tradespeople should note that Scottish income tax rates differ from rUK. Expense deductions remain the same under MTD.
MTD for Income Tax applies across Scotland using the same thresholds. Scottish income tax rates are applied separately. Common deductible expenses for builders include: materials, skip hire, scaffolding, plant hire, subcontractor costs, van, fuel, insurance.
Your next quarterly deadline and how long you have to prepare.
Track every job from quote to payment. Kanban board. Drag and drop.
Create and send invoices in seconds. Looks professional. Gets you paid.
Snap receipt photos. Auto-categorise to HMRC categories. Never miss a deduction.
See your Q1–Q4 breakdown with HMRC SA103 categories. Deadline countdowns built in.
All your customers in one place. Call, WhatsApp, track job history.
Built for tradespeople, not accountants. Works from your van in 10 seconds.
| Feature | Graft | Xero | QuickBooks | FreeAgent |
|---|---|---|---|---|
| Monthly cost | Free / £3 Pro | From £15 | From £10 | £19* |
| Built for trades | ✓ | ✗ | ✗ | ✗ |
| Job management | ✓ | ✗ | ✗ | ✗ |
| HMRC categories | ✓ | ✓ | ✓ | ✓ |
| Quarterly view | ✓ | ✓ | ✓ | ✓ |
| Receipt scanner | ✓ (AI) | ✓ | ✓ | ✓ |
| Mobile-first | ✓ | Partial | Partial | Partial |
| Customer CRM | ✓ | ✗ | ✗ | ✗ |
*FreeAgent is free with NatWest/RBS/Mettle business accounts. Otherwise £19/month.
timber, plasterboard, bricks, blocks, cement, sand, aggregate, skip hire, scaffolding hire, plant/digger hire, subcontractor labour, van fuel, vehicle costs, public liability insurance, CSCS card, waste disposal fees, tool hire
Graft auto-maps all of these to the correct HMRC SA103 categories: Cost of goods, Car/van/travel, Phone/office, Rent/rates/insurance, Advertising, and Other expenses.
If your qualifying income exceeds £50,000 from April 2026 (or £30,000 from April 2027), yes. Most full-time builders will cross this threshold. Qualifying income is gross turnover, not profit.
CIS deductions are taken at source (20% or 30%), but your qualifying income for MTD is your gross income before CIS deductions. You still need to track all income and expenses digitally. CIS tax already deducted is reconciled in your Final Declaration.
Yes. Building materials go under "Cost of goods" in HMRC categories. Skip hire, scaffolding, and plant hire are also allowable expenses. Graft maps these automatically.
Q1: 6 Apr – 5 Jul (deadline ~7 Aug). Q2: 6 Jul – 5 Oct (deadline ~7 Nov). Q3: 6 Oct – 5 Jan (deadline ~7 Feb). Q4: 6 Jan – 5 Apr (deadline ~7 May). Plus a Final Declaration by 31 January the following year.
The full CRM — jobs, invoicing, quotes, expenses, customer management — is completely free. The MTD quarterly view with HMRC categories is free. Pro at £3/month adds CSV exports and deadline reminders. No hidden fees.
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