Making Tax Digital for Plasterers —
Price Work, Day Rates & CIS Explained
Price Work and Day Rate Income Both Count the Same
Many plasterers work partly on price work (a fixed price per m² or per job) and partly on day rate for contractors who prefer to pay by time rather than output. Whichever way you're paid, it's all self-employment income that combines into one qualifying income figure. Price work can create lumpier income than day-rate work, since a run of large new-build jobs can bring in far more in a short period than steady day-rate site work — but as with every trade, what matters for MTD is your total across the full year, not the shape of it.
CIS Deductions Work the Same Way Here Too
If you're subcontracting for a main contractor, your MTD qualifying income is your gross invoiced amount before the 20% (or 30%) CIS deduction, not your net take-home. This applies whether you're paid at a day rate or per square metre of plastering completed. The CIS tax already deducted is offset against your final Self Assessment bill separately, it doesn't reduce the income figure used to check your MTD threshold.
Records for Price Work and Day Rates Under CIS
Plastering is often paid by the metre or by the room, with CIS deductions from contractors. Keep the gross figure clear in every record.
- Record each payment at gross, and keep the monthly CIS statements.
- Log price-work jobs with the area plastered, the rate and the date paid.
- Keep plaster, bead and tool receipts, and treat mixers and larger tools as capital items.
- Record work for private customers separately from contractor work.
- Keep mileage between jobs.
Common Mistakes Plasterers Make
- Testing the threshold on the net payment. Use the gross amount before the CIS deduction.
- Forgetting labourers. If you pay a labourer, record the cost and check your obligations.
- Losing retention. Money held back is still part of the job price.
- Treating tools as one-offs. Mixers and scaffolding are often capital allowances.
- Skipping CIS statements. They are your evidence of tax paid.
A Sample Quarter: What the Update Looks Like
A sample quarter for a plasterer on price work for a contractor.
| Q2: 6 July to 5 October 2026 | Amount |
|---|---|
| Price work (gross of CIS) | £14,600 |
| Private domestic jobs | £4,100 |
| Total income | £18,700 |
| Plaster, bead and consumables | £2,300 |
| Tools and equipment | £520 |
| Van, fuel and insurance | £1,750 |
| Labourer | £1,900 |
| Total expenses | £6,470 |
| Profit for the quarter | £12,230 |
Materials a contractor supplies do not appear here, since you are paid for labour only.
Worked Example
Price-work income (gross, before CIS deduction): £29,600
Day-rate CIS income (gross, before CIS deduction): £11,800
Total qualifying income: £41,400 — above the £30,000 Phase 2 threshold. Reuben joins MTD from April 2027. Because most of his income is price work, it varies significantly between quarters depending on which sites are active, but his annual total is what determines his MTD position.
What You Can Claim
- Materials — plaster, bonding, jointing compound, beading (where you supply them)
- Tools and equipment — mixing paddles, hawks, trowels, mixing tubs, usually claimed in full
- Van costs — fuel, insurance, or the 55p/mile mileage rate
- Protective equipment — dust masks, overalls, knee pads
- Public liability insurance
- CSCS card and CITB levy where applicable
- Skip hire or waste disposal for larger jobs
Best MTD Software for Plasterers
Software links are affiliate, help fund CheckMyMTD. Recommendations based on ease of use for self-employed income tracking.
Frequently Asked Questions
Does price work count differently to day-rate work for MTD?
No, both combine into the same qualifying income figure regardless of how you're paid. What matters is the total gross amount you invoiced across the tax year.
Is my threshold based on income before or after CIS deduction?
Before. Your qualifying income is your gross invoiced amount, not the amount you actually receive after the contractor deducts CIS tax at source.
My income varies a lot depending on which sites are running. Is that a problem?
No, that's normal for price work. Your MTD eligibility is based on your total annual qualifying income, not on how evenly it's spread across quarters.
Can I claim my mixing tools and trowels as an expense?
Yes, tools and equipment used for your plastering work are allowable business expenses, usually claimed in full via the Annual Investment Allowance.
I do both CIS subcontracting and direct client plastering. Do they combine?
Yes, all self-employment income combines into one qualifying income figure regardless of whether it came through CIS or direct client work.