MTD for Kitchen & Bathroom Fitters —
Supply-and-Fit and Your Threshold
Use your gross invoiced total before units, materials, and subcontracted trades are deducted.
- The same £50k / £30k / £20k phased MTD thresholds apply as any self-employed sole trader, a single large kitchen job can be worth several months of smaller work combined.
- A full kitchen or bathroom price, units, tiling, and labour together, counts as gross income in full, materials and any subcontracted trades are then claimed as separate expenses.
- Deposits taken before work starts count as income when received under the cash basis, not when the job is completed.
If you run a self-employed kitchen or bathroom fitting business, whether working directly for homeowners or through a showroom, Making Tax Digital applies to you the same way it applies to any sole trader. A single kitchen or bathroom job can be worth tens of thousands of pounds, which means your total income can climb past the threshold faster than the number of jobs might suggest.
Are You Affected by MTD as a Kitchen or Bathroom Fitter?
Yes, if your gross fitting income, plus any other self-employment income, exceeds the relevant threshold:
| Tax Year Assessed | Threshold | MTD Start Date |
|---|---|---|
| 2024–25 | Over £50,000 | 6 April 2026. Live since April 2026 |
| 2025–26 | Over £30,000 | 6 April 2027 |
| 2026–27 | Over £20,000 | 6 April 2028 |
Your gross income is your total invoiced amount before expenses, units, worktops, tiles and any subcontracted labour are all deducted afterwards, not before, when checking your threshold.
Supply-and-Fit Pricing and Subcontracted Trades
Most kitchen and bathroom jobs are priced as one figure covering units, materials and labour together. The full invoiced amount is your gross trading income, materials costs are then claimed back separately as an expense. The same applies to any plumber or electrician you subcontract and pay out of the job, their fee is a deductible cost to you, it doesn't reduce your own gross income figure for MTD purposes.
Deposits and the Cash Basis
Most fitters take a deposit before ordering units and starting work, with the balance due on completion. Under the cash basis, which most self-employed fitters use, a deposit counts as income when received, not when the job is finished, this can matter if a job spans two tax years.
What You Can Claim
| Expense Category | Examples |
|---|---|
| Units and materials | Kitchen units, worktops, tiles, sanitaryware |
| Subcontracted trades | Plumbers or electricians paid out of the job |
| Tools and equipment | Power tools, via capital allowances for larger items |
| Vehicle costs | Van running costs or mileage, at the current HMRC rate |
| Insurance | Public liability insurance |
Records for Supply-and-Fit Jobs and Subcontractors
Kitchen and bathroom fitters often supply units and tiles as well as the labour, and subcontract electrics and plumbing. Each job has several moving parts.
- Record deposits, stage payments and final balances on the dates they arrive.
- Keep unit, worktop and sanitaryware supplier invoices matched to jobs.
- Record subcontractor invoices against each job, and keep their certificates.
- Keep tool and equipment costs, treating larger items as capital.
- Log mileage and van costs separately.
Common Mistakes Kitchen and Bathroom Fitters Make
- Netting off materials. A £12,000 job counts in full even if £7,000 went on units.
- Recording only the final payment. Deposits count when received.
- Forgetting snagging and extras. Additional work adds to the job price.
- Mixing CIS and private work. Keep CIS statements apart.
- Skipping subcontractor records. You need their invoices as costs.
A Sample Quarter: What the Update Looks Like
A sample quarter for a fitter with a few kitchens and bathrooms under way.
| Q2: 6 July to 5 October 2026 | Amount |
|---|---|
| Deposits received | £9,400 |
| Completed job balances | £18,700 |
| Small repairs and snagging | £1,300 |
| Total income | £29,400 |
| Units, worktops and sanitaryware | £14,100 |
| Subcontracted electrics and plumbing | £4,200 |
| Van, fuel and insurance | £2,300 |
| Tools and equipment | £780 |
| Total expenses | £21,380 |
| Profit for the quarter | £8,020 |
Because deposits arrive before the work, a quarter can show income and costs that belong to different jobs.
Worked Example
Lauren — Self-employed kitchen and bathroom fitter
Lauren's £67,000 gross income exceeds the £50,000 Phase 1 threshold, even though a significant share is unit costs and subcontracted plumbing fees she'll claim back as expenses.
Frequently Asked Questions
Does the cost of units and worktops count as my income?
Yes, initially. If you invoice one supply-and-fit price, the full amount counts as your gross income first, with unit and material costs claimed back separately as expenses, reducing your taxable profit but not the gross figure used for your MTD threshold check.
What's the MTD threshold for kitchen and bathroom fitters?
The same as any self-employed sole trader: over £50,000 gross income in 2024–25 means MTD from April 2026, over £30,000 in 2025–26 means April 2027, over £20,000 in 2026–27 means April 2028.
If I pay a plumber to help on a job, does that reduce my income?
It reduces your taxable profit, as a deductible expense, but your gross income for the MTD threshold check is still the full amount you invoiced the client, before that subcontracted fee is deducted.
When does a deposit count as income?
Under the cash basis, which most self-employed fitters use, a deposit counts as income in the tax year you receive it, not when the job is completed.
What software do I need as a self-employed fitter?
Any HMRC-recognised MTD software works. The main practical need is tracking materials and subcontractor costs against each job, which most trade-focused invoicing apps handle well.
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