Making Tax Digital for Scaffolders —
CIS & Day Rate Income Explained
Day Rate CIS Work Is the Norm, and the Gross Rule Still Applies
Most self-employed scaffolders work day rate under CIS for one or more principal contractors, putting up and taking down scaffold on commercial and residential sites. As with every CIS trade, your MTD qualifying income is your gross day rate earnings before the contractor's 20% (or 30%) deduction, not your net take-home pay. This applies whether you're paid weekly, fortnightly, or on completion of a phase.
Working for Multiple Contractors at Once
Scaffolders commonly work for several different scaffolding firms or principal contractors across a working year, moving between sites as work becomes available. Every contractor's payments, however they're structured or however often you switch between them, combine into a single qualifying income figure for MTD purposes. There's no separate threshold per contractor.
Yard, Equipment and CIS Records
Scaffolding is capital-heavy. You may own tube, boards, fittings and a lorry, rent a yard and work for several contractors on different CIS terms. Records need to separate those streams.
- Keep each contractor’s monthly CIS statement, and record the gross invoice before any deduction.
- Log scaffold hire income separately from erection and dismantling labour.
- Keep purchase invoices for tube, boards and couplers. They are usually claimed as capital allowances, not as one-off expenses.
- Keep yard rent, lorry costs, fuel and tachograph or inspection fees in their own categories.
- Keep inspection and tagging records, since they support both safety and the equipment costs.
Common MTD Mistakes for Scaffolders
- Testing the threshold on net CIS payments. The test uses the gross amount you invoiced, before the contractor deducts tax.
- Forgetting hire income. If you hire out scaffold as well as erect it, both are income.
- Expensing a new lorry or a load of tube. These are usually capital items, so keep the invoice and the purchase date.
- Losing track of several contractors. Name each one in your software so the monthly statements reconcile.
- Ignoring the cost of insurance and inspections. They are significant and allowable, but only if recorded.
A Sample Quarter: What the Update Looks Like
A sample quarter for a scaffolder working for two main contractors and hiring out spare equipment.
| Q2: 6 July to 5 October 2026 | Amount |
|---|---|
| Erect and dismantle labour (gross of CIS) | £24,600 |
| Scaffold hire income | £3,900 |
| Total income | £28,500 |
| Yard rent and utilities | £2,400 |
| Lorry fuel, insurance and servicing | £3,100 |
| Scaffold fittings and boards bought | £1,800 |
| Inspection, tagging and insurance | £1,250 |
| Total expenses | £8,550 |
| Profit for the quarter | £19,950 |
The labour figure is the gross invoice before any CIS deduction. The deduction itself is recorded separately as tax already paid.
Worked Example
Contractor A (gross day rate income, before 20% deduction): £24,800
Contractor B (gross day rate income, before 20% deduction): £19,600
Total qualifying income: £44,400 — above the £30,000 Phase 2 threshold, below £50,000. Kai joins MTD from April 2027. The 20% CIS tax deducted by both contractors is offset against his final Self Assessment bill, but his qualifying income for MTD purposes is the combined gross amount from both, before either deduction.
What You Can Claim
- PPE and safety equipment — harnesses, hard hats, safety boots, often a significant cost in this trade
- CISRS card renewal and training courses
- Travel costs between sites at 55p/mile if not reimbursed by the contractor
- Public liability insurance if working independently rather than solely through a firm
- CITB levy where applicable
- Tool bags and hand tools you provide yourself
Best MTD Software for Scaffolders
Software links are affiliate, help fund CheckMyMTD. Recommendations based on ease of use for self-employed income tracking.
Frequently Asked Questions
Is my day rate income assessed before or after the CIS deduction?
Before. Your qualifying income is your gross day rate earnings, not the amount you actually receive after the contractor deducts CIS tax at source.
I work for two different scaffolding contractors. Do I add both incomes together?
Yes, regardless of how many contractors you work for or how often you move between them, all your CIS income combines into a single qualifying income figure.
Can I claim my CISRS card renewal as an expense?
Yes, professional card renewal and required training courses are a normal allowable business expense.
Can I claim PPE and safety equipment I buy myself?
Yes, protective equipment you provide yourself, rather than what's supplied by a contractor, is a normal allowable business expense.
Does travel between different sites count as a business expense?
Yes, if you're not reimbursed by the contractor, travel between sites can be claimed at 55p/mile for the first 10,000 business miles.