Use your gross invoiced total before units, materials, and subcontracted trades are deducted.
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.
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.
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.
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.
| 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 |
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.
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.
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.
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.
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.
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.
Our free calculator checks your exact threshold, deadlines, and recommends the easiest software for your record-keeping.
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