Industry specialists
Accountants for Tradespeople
Last updated 17 July 2026
At a glance
- CIS: contractors deduct 20% from registered subcontractors (30% if unregistered) — most sole-trader tradespeople are due money back
- Van, fuel, tools, PPE and materials are deductible or attract capital allowances — keep receipts digitally
- VAT registration is compulsory at £90,000 taxable turnover — scheme choices matter for trades
- MTD for Income Tax starts at £50,000 qualifying income from April 2026 — digital records become mandatory
- Typical fees: £39–£89/month or one-off returns from around £150 on our benchmarks
CIS refunds: why most tradespeople overpay
If contractors deduct 20% from your invoices all year, you have almost certainly overpaid — the deductions ignore your materials, van costs, tools and personal allowance. Sole traders reclaim through self assessment after the tax year ends; limited companies offset deductions against PAYE during the year. A well-prepared claim with proper evidence moves far faster through HMRC than a shoebox job, and for many tradespeople the first refund alone covers years of accountancy fees.
Vans, tools and what you can actually claim
The big deductions in a trade are the vehicle, the tools and the materials. Sole traders choose between simplified mileage (45p per mile for the first 10,000 business miles) and the business share of actual costs; limited companies have different rules again. Tools and equipment generally qualify for capital allowances, consumables and PPE are straight expenses, and training that maintains existing skills is usually claimable. The right method depends on your vehicle and mileage — a decision worth ten minutes with an accountant before your first return.
VAT, going limited, and MTD
Approaching £90,000 turnover makes VAT registration compulsory, and the choice between standard and flat rate accounting genuinely matters for trades with material-heavy jobs. Incorporation starts to make sense for many tradespeople as profits grow — liability protection matters when you work on other people's property. And from April 2026, MTD for Income Tax brings digital record-keeping and quarterly updates for sole traders with qualifying income over £50,000, so the spreadsheet-and-shoebox era is ending. A trade-savvy accountant sequences all three decisions rather than lurching between them.
Frequently asked questions
How do I get my CIS tax back?
Sole traders claim through self assessment after 5 April — the deductions your contractors reported are credited against your final bill and the overpayment refunded. Register for CIS first if you have not (unregistered subcontractors suffer 30% deductions), keep your deduction statements, and file early: well-evidenced claims are typically repaid within weeks.
What can I claim for my van?
Under the actual-cost method: the business share of fuel, insurance, repairs, road tax and finance interest, plus capital allowances on the vehicle itself. Under the mileage method the 45p/25p rates are deemed to cover everything vehicle-related. You generally stick with whichever method you first use for that vehicle — choose carefully.
Do I need an accountant as a self-employed tradesperson?
Not legally — but with CIS deductions to reclaim, vehicle and tool claims to optimise, and MTD digital records arriving from 2026, most tradespeople find the fee pays for itself. A one-off return starts from around £150; ongoing monthly support costs £39–£89 on our benchmarks.
Information only — not tax, accountancy, or financial advice. Rules and thresholds change; confirm current positions with GOV.UK or a qualified accountant. Last reviewed 17 July 2026.