Large material orders, customer deposits, FENSA registration and emergency glazing work. Here's how Making Tax Digital for Income Tax applies to window fitters and glaziers, and exactly when it starts.
MTD for Income Tax phases in by gross income before expenses. Big window orders pass through your accounts, so your gross turnover can be well above your profit.
Even when most of a job is the windows you bought in, it all counts as gross income for the threshold. Recording the matching purchases as expenses keeps your tax based on the fitting margin.
When you're in scope, your annual Self Assessment return is replaced by four short quarterly updates and a year-end final declaration, all through recognised software.
Record deposits and supplier orders as they happen so a big order is matched to its income cleanly.
A deposit funds the window order. Recorded in the right quarter, it keeps your figures and cash flow clear.
Certification scheme fees are deductible. Keep them recorded so your expense total stays complete.
Call-outs paid by a customer or insurer are income. Record the invoice and the materials against the same job.
Units you buy and recharge count as income. Record purchases so you're taxed on the fitting margin.
When thousands of pounds of units pass through your books, the margin needs to be clear. Clear Books keeps income and purchases matched and gives HMRC exactly what MTD needs.
Record orders, deposits and call-outs as you go, watch your gross against the thresholds, and be ready to submit when your wave lands.
