If you’re a construction worker, CIS subcontractor or self-employed tradesperson, you might be wondering: can I still claim expenses under MTD (Making Tax Digital)?
The answer is yes. Even with MTD coming into effect, you can still claim business expenses to reduce your tax bill. The main difference is that expenses must be recorded and submitted digitally through HMRC-approved software.
This guide explains how it works, which expenses you can claim, and how to prepare for MTD without stress.
What is MTD and how does it affect expenses?
Making Tax Digital (MTD) is a government initiative requiring self-employed workers to keep records and file updates digitally. For construction workers, this means:
- Submitting quarterly updates instead of one annual tax return.
- Recording all income and expenses in MTD-compatible software.
- Providing a final end-of-period statement each year.
The key point is: your entitlement to claim expenses hasn’t changed just the way you report them.
Common expenses construction workers can claim
As a CIS subcontractor or sole trader, you can still deduct the same business expenses to lower your taxable income. Here are examples:
| Expense Type | Examples in Construction Work |
|---|---|
| Tools & Equipment | Power tools, ladders, safety gear |
| Travel & Mileage | Fuel, parking, public transport for jobs |
| Protective Clothing | Helmets, gloves, steel-toe boots |
| Training & Certification | CSCS cards, health & safety courses |
| Phone & Internet | Work-related mobile calls or data |
| Office/ Admin Costs | Software subscriptions, stationery |
Tip: Always keep receipts – digital copies are valid and accepted under MTD.
How to record expenses under MTD
- Choose MTD-compatible software – such as QuickBooks, FreeAgent or Sage.
- Upload receipts digitally – most apps let you snap photos of receipts with your phone.
- Categorise expenses correctly – e.g., fuel vs tools vs training.
- Update records regularly – don’t wait until the end of the quarter.
- Review before submitting – make sure deductions are accurate.
Benefits of digital expense tracking
Switching to digital records may feel like extra admin at first, but it actually makes life easier:
- No more lost receipts – everything is stored securely online.
- Easier rebate claims – accurate expense records help reduce your tax bill.
- Better cash flow awareness – quarterly updates show how much tax you really owe.
- Peace of mind – stay compliant with HMRC rules and avoid penalties.
Final thoughts
So, can you still claim expenses under MTD? Absolutely. The rules around what you can claim haven’t changed, only how you record and submit them. By keeping digital copies of your receipts and using approved software, you’ll stay compliant and maximise your tax savings.
Need help claiming expenses or preparing for MTD?
At Tax2u, we specialise in helping CIS workers, sole traders and self-employed construction workers manage their expenses, claim maximum rebates, and stay compliant with HMRC’s Making Tax Digital rules.
Start your MTD journey with Tax2u today and make tax simple.