Hudson has received enquiries from companies whose CIS subcontractors are being targeted by accountancy firms using HMRC’s new Making Tax Digital for Income Tax (MTD) rules to seek new business. The changes appear complicated, so those subcontractors are requesting advice from their customers.

Our short video will help you answer their questions if you find yourself in a similar situation.

What MTD means for your subcontractors

No immediate action is required, however, from 6^th April 2026, sole traders with income from self-employment or property over £50,000 will be required to follow the new rules. Individuals, or their bookkeepers / accountants, will need to use HMRC-compatible software (such as QuickBooks, Xero, Sage or FreeAgent) to:

• Keep digital records of their income and expenses
• Send quarterly updates to HMRC
• Submit a Final Declaration each year by 31 January
  
  

How Hudson can simplify this process for you

We’re speaking to a number of our accountancy partners about simple-to-use MTD systems and will be releasing a guide in the coming weeks. Our aim is to make compliance as straightforward as possible, and we’ll continue to share further updates in due course.

Why this matters

• Voluntary sign-up is open now, allowing operatives to get familiar before it becomes compulsory. As it is currently voluntary, we would not expect subcontractors to sign-up to the additional expense of MTD until April 2026 when they have to.
• From April 2026, penalties will apply for missed or late submissions so it will be important to have arrangements in place by March next year.

If any of your operatives have questions, please reassure them they can contact us for support on 01262 401040.