Electrical work often bundles several chargeable elements into one job: the actual installation or repair labour, materials (cable, consumer units, fittings), and certification (EICRs, minor works certificates, NICEIC or NAPIT compliance paperwork). Every element combines into your total invoice, and your qualifying income is the full invoice amount, not just your labour or your margin on materials after what you paid a wholesaler.
CIS Contract Work Follows the Same Gross-Income Rule
Many electricians split their time between direct domestic and commercial clients, and CIS subcontract work for main contractors on larger builds. For the CIS portion, your MTD qualifying income is your gross invoiced amount before the 20% (or 30%) CIS deduction, not your net take-home after the contractor withholds tax. This is the single most common point of confusion for electricians checking their MTD position for the first time.
Worked Example
Freddie. NICEIC-registered self-employed electrician, mostly domestic rewires and EICR testing, plus CIS subcontracting for a new-build contractor.
Domestic and commercial jobs (gross, including materials and certification): £31,400
CIS subcontract labour (gross, before 20% deduction): £13,600 Total qualifying income: £45,000 — above the £30,000 Phase 2 threshold, below £50,000. Freddie joins MTD from April 2027. The 20% CIS tax already deducted from his subcontract income is offset against his final tax bill, but it doesn't reduce the £45,000 qualifying income figure used to check his MTD position.
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Frequently Asked Questions
Is certification income (EICRs, minor works certs) separate from my labour income?
No, all of it combines into the same qualifying income total, however you itemise it on the invoice.
Is my CIS threshold based on income before or after the deduction?
Before. Your qualifying income is your gross invoiced amount, not the amount that actually reaches your bank account after the contractor's CIS deduction.
Can I claim my NICEIC membership fee?
Yes, professional body membership and assessment fees required for your work are a normal allowable business expense.
Do domestic and CIS income combine into one MTD threshold check?
Yes, all your self-employment income combines into a single qualifying income figure, regardless of the source.
Can I claim the full cost of a new multifunction tester?
In most cases yes, via the Annual Investment Allowance, letting you deduct the full cost against your profit in the year you buy it.
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