Making Tax Digital for Locksmiths —
Emergency Call-Outs & Parts Explained
Emergency Premiums Are Still Just Income
Locksmithing is one of the few trades where pricing genuinely spikes based on urgency and timing — a daytime lock change might be £70, while a 2am emergency lockout can be £150 or more. However dramatically your pricing varies job to job, every payment you receive counts identically towards your MTD qualifying income. There's no special treatment for emergency or out-of-hours premiums; they're simply part of your total self-employment income for the year.
Cylinders, uPVC Mechanisms, and Parts on the Van
Most locksmiths carry a stocked van of cylinders, uPVC mechanisms, and mortice locks, invoicing customers for both the part and the fitting labour together. As with any trade supplying materials, your qualifying income is the full invoice amount, not just your margin on the part after what you paid your supplier. What you actually paid for stock is claimed back separately as a business expense.
Records for Call-Outs, Lock Fitting and Contracts
Locksmiths earn from emergency call-outs, planned lock fitting and sometimes landlord or agent contracts. Fast cash jobs and invoiced jobs need different handling.
- Log each call-out with the date, address type, work done and price.
- Record landlord and agent invoices separately, since they are paid later.
- Keep lock, cylinder and hardware supplier receipts.
- Keep van, tool and key-cutting equipment costs.
- Keep trade body, DBS and insurance costs.
Common MTD Mistakes for Locksmiths
- Losing cash call-outs. A day of cash jobs is easy to miss without a log.
- Netting off parts. Parts do not reduce the income tested.
- Forgetting agency work. Letting agents pay on invoice, so track the dates.
- Treating key machines as one-offs. Larger equipment is a capital allowance.
- Skipping insurance. It is allowable and often required.
A Sample Quarter: What the Update Looks Like
A sample quarter for a locksmith with a steady flow of call-outs and two agent contracts.
| Q2: 6 July to 5 October 2026 | Amount |
|---|---|
| Emergency call-outs | £7,400 |
| Lock fitting and upgrades | £4,600 |
| Landlord and agent contracts | £2,900 |
| Total income | £14,900 |
| Locks, cylinders and hardware | £2,800 |
| Van, fuel and insurance | £1,850 |
| Tools and key machines | £480 |
| Advertising and phone | £690 |
| Total expenses | £5,820 |
| Profit for the quarter | £9,080 |
Advertising is a real cost in this trade, and it is allowable with the invoice.
Worked Example
Domestic call-outs and lock changes (including parts, gross): £26,400
Emergency and out-of-hours premium work: £7,900
Commercial access control contracts: £9,200
Total qualifying income: £43,500 — above the £30,000 Phase 2 threshold, below £50,000. Isaac joins MTD from April 2027. The cylinders and mechanisms he bought at trade price to fit on these jobs are claimed as an expense, but his qualifying income is the full gross amount he invoiced customers.
What You Can Claim
- Cylinders, mechanisms, and locks bought as stock — claimed at what you paid your supplier
- Van costs — fuel, insurance, or the 55p/mile mileage rate
- Specialist tools — non-destructive entry tools, key cutting machines, usually claimed in full
- Public liability and professional indemnity insurance — particularly important given the trust-based nature of the work
- DBS checks and trade association membership (MLA)
- Phone and out-of-hours answering service costs
- Vehicle security and stock insurance for tools and cylinders carried in the van
Best MTD Software for Locksmiths
Software links are affiliate, help fund CheckMyMTD. Recommendations based on ease of use for self-employed income tracking.
Frequently Asked Questions
Does an emergency call-out fee count differently to a standard job?
No, however much your pricing varies by urgency or time of day, every payment counts identically towards your qualifying income. There's no separate category for emergency or out-of-hours work.
Is my qualifying income the part price, or my margin after what I paid for it?
It's the full amount you invoiced the customer, including the part. What you paid your supplier for the cylinder or mechanism is then claimed back separately as a business expense, reducing your taxable profit but not your gross qualifying income.
Do domestic and commercial locksmith work combine into one figure?
Yes, all self-employment income combines into a single qualifying income figure regardless of whether the work was domestic, commercial, or emergency call-outs.
Can I claim my key cutting machine as an expense?
Yes, in most cases the full cost qualifies for the Annual Investment Allowance, letting you deduct it against your profit in the year you buy it.
Do I need to keep records of cash payments from lockouts?
Yes, cash payments count towards your qualifying income exactly the same as card or bank transfer, and MTD requires you to keep digital records of all of it, kept close to real time.