Yes. Coconut is HMRC-recognised software for Making Tax Digital for Income Tax. You can use Coconut to keep digital records, send quarterly updates and submit your year-end return directly to HMRC once your Coconut account is connected to HMRC. Coconut is also FCA authorised and uses bank-level security.
Making Tax Digital for CIS Subcontractors
HMRC-recognised
Built for CIS subcontractors
14-day free trial
No card details needed
Get ready for Making Tax Digital with Coconut's simple MTD software for CIS subcontractors.
Coconut records income, tracks trade expenses, keeps digital records, manages CIS deductions and sends quarterly updates to HMRC, all from one place.
It's built for self-employed people working in the construction industry who want to stay on top of tax without complicated accounting software, messy spreadsheets or a last-minute scramble at the end of the tax year.
Get MTD-ready as a CIS subcontractor
If you work under the Construction Industry Scheme, your tax can already feel a bit fiddly.
Contractors deduct CIS tax from your labour before they pay you. You get monthly CIS statements. You still need to track your income and expenses. And when Making Tax Digital for Income Tax applies to you, you'll also need to keep digital records and submit quarterly updates to HMRC through recognised software.
Coconut helps keep that manageable.
Coconut is HMRC-recognised for Making Tax Digital for Income Tax. It's also FCA authorised and uses bank-level security to help keep your data safe.
Easy self-employed bookkeeping
Track CIS deductions taken by contractors
Keep digital records of income and expenses
Snap and store receipts from site
Connect your bank account securely
See your tax position as the year goes on
Submit quarterly updates and your year-end return to HMRC
Why CIS subcontractors choose Coconut for MTD
Making Tax Digital for CIS shouldn't mean spending more evenings sorting paperwork. Coconut is built to help CIS subcontractors keep their records organised as they go, so quarterly updates, CIS bookkeeping and year-end tax do not become a bigger job than they need to be.
Record CIS deductions clearly
When a contractor deducts 20% or 30% from your labour at source, Coconut helps you keep track of what has already been deducted.
That means your income totals, CIS deductions and tax estimates are easier to follow throughout the year.
Keep income and expenses in one place
Coconut helps you track business income, trade expenses, CIS invoices, receipts and payments in one simple system.
So instead of relying on paper notes, old spreadsheets or screenshots from your bank app, you can keep accurate digital records ready for MTD.
Snap receipts on site
Bought tools, fuel, materials or workwear?
You can snap receipts from the mobile app and attach them to the right transactions. That makes it easier to keep expenses digitally, without trying to remember everything later.
Connect your bank account
Link your bank account securely through Open Banking and Coconut can pull in your payments automatically.
That means less manual data entry, clearer records and fewer gaps when it's time to check your income and expenses.
See your tax position as you go
Coconut gives you a clearer view of your profit, income tax estimate and CIS tax already deducted.
That helps you understand what you may owe, what has already been paid towards your tax bill and whether you may be due a CIS reclaim at year end.
Submit updates to HMRC
When MTD for Income Tax applies to you, Coconut makes it easy for you to send quarterly updates to HMRC through HMRC-recognised software.
At the end of the tax year, Coconut also helps with your year-end tax return, so your records, updates and final tax position stay connected.
Get expert support when you need it
You don't need to work out Making Tax Digital on your own.
Coconut's expert support team is there to help when you need a hand, with tax knowledge that includes experience from former HMRC staff.
Coconut plans and pricing for CIS subcontractors
Start with bookkeeping, then choose the plan that gives you the level of MTD and tax support you need.
Every plan is built for sole traders, CIS subcontractors and self-employed people who want to track income, claim expenses and stay on top of tax without complicated accounting software.
You can try Coconut free for 14 days. No card details needed.
Your Coconut subscription may also be a claimable business expense, which means it can reduce your taxable profit. If you're not sure how that applies to your tax position, it's worth checking with your accountant.
MTD Bridging
£49.99
per year
Monthly pricing not available
Best for sole traders and landlords using spreadsheets to submit MTD updates
£16.99
per month
Key features
- Keep your spreadsheet and stay MTD compliant
- Submit MTD quarterly updates directly to HMRC
- Supports self-employment and property income
- Multiple businesses and income sources
Most popular
MTD filing
£12.99
per month
Or £129.99 per year
Best for sole traders and landlords who need HMRC-recognised MTD software for Income Tax
£21.99
per month
Key Features
- Send quarterly MTD updates to HMRC
- Includes your MTD Annual Submission (Year-End Declaration)
- Dedicated MTD expert help
- In year tax estimates
- Automatic income and expense tracking
- Connect your bank in 30 seconds
- Expenses categorised for you
- HMRC recognised for MTD
Want !Coconut for free for 2 years?
Then apply for a free Zempler bank account within !Coconut.
It only takes 2 minutes!
Savings are based on the monthly price
Does Making Tax Digital for Income Tax apply to CIS subcontractors?
Yes, if your qualifying income is above the relevant Making Tax Digital threshold.
For CIS subcontractors, this usually means your gross self-employment income before expenses and before CIS deductions are taken off. If you also have property income, that can count towards the threshold too.
Here's the simple version:
April
2026
CIS subcontractors earning above £50,000 need to comply with Making Tax Digital for Income Tax.
April
2027
CIS subcontractors earning above £30,000 need to comply with Making Tax Digital for Income Tax.
April
2028
CIS subcontractors earning above £20,000 need to comply with Making Tax Digital for Income Tax.
The important bit is that the threshold is based on gross income, not what lands in your bank account after CIS deductions.
So, if you invoice £55,000 for labour and a contractor deducts 20% under CIS, your qualifying income may still be £55,000 for MTD.
When MTD rules apply to you, you'll need to:
Keep digital records
Use HMRC recognised software
Submit quarterly updates to HMRC
Complete a year-end tax submission and annual final declaration
That might sound like a major change if you're used to doing one Self Assessment tax return a year. But quarterly updates are not the same as filing four full tax returns. They are regular summaries of your income and expenses, which are much easier to manage when your records are already up to date.
Coconut helps you keep your income, expenses and CIS deductions organised throughout the year, so each quarterly update is easier to prepare when it's due.
How CIS works alongside MTD
Making Tax Digital does not change how the Construction Industry Scheme works.
Contractors still deduct CIS tax from your labour before they pay you. They still deduct 20% if you're registered under CIS, or 30% if you're not. They still provide CIS statements showing your gross pay and the CIS deduction taken.
The change is how you keep and report your records.
Instead of pulling everything together once a year for Self Assessment, you'll need to keep digital records and send quarterly updates when MTD applies to you.
1
Your CIS deductions still count
CIS deductions are still advance payments towards your income tax and National Insurance.
At year end, your final tax position is worked out using your income, expenses and the CIS tax already deducted. If too much has been deducted, you may still be able to reclaim overpaid CIS tax.
2
Monthly CIS statements stay useful
Each month, your contractor should give you a CIS statement showing your gross pay and the deduction taken.
With Coconut, you can record the income and CIS deduction digitally, then keep those details connected to your wider income and expenses.
That helps your CIS records stay tidy across the quarter, rather than leaving you to piece everything together later.
3
Quarterly updates become easier to manage
When your records are already organised, your quarterly updates are much simpler.
Coconut helps you keep CIS income, cash jobs, expenses, receipts and invoices in one place, so your MTD reporting is based on records you've been building throughout the year.
No messy spreadsheets. No copying figures into separate forms. No trying to work out your tax position from a pile of CIS statements in January.
4
You do not usually file CIS monthly returns as a subcontractor
One point that often causes confusion: contractors usually file CIS monthly returns to HMRC. CIS subcontractors usually receive CIS statements and report their income through Self Assessment or MTD for Income Tax.
Coconut is designed for subcontractors who need to keep digital records, track CIS deductions and submit MTD updates when the rules apply to them.
What is the best MTD software for CIS subcontractors?
The best MTD software for CIS subcontractors is software that fits the way you actually work.
That means it should help you keep digital records, track income and expenses, record CIS deductions, store receipts, connect your bank account and submit quarterly updates to HMRC without making you learn a full accounting system.
Coconut is built for sole traders, CIS subcontractors and self-employed people who want a simpler way to manage tax.
It gives you the tools you need to stay compliant, but keeps the everyday admin clear and practical. So, if you're looking for CIS software that helps with Making Tax Digital, Coconut gives you a focused way to manage CIS bookkeeping, MTD reporting and year-end tax in one place.
HMRC-recognised software for MTD for Income Tax
Coconut is HMRC-recognised software for Making Tax Digital for Income Tax.
That means you can use Coconut to keep digital records and send MTD updates securely to HMRC when the rules apply to you.
It's built for CIS subcontractors and self-employed people who want a simpler way to stay on top of tax, without complicated accounting software, bridging software or messy spreadsheets.
So, when you need to track CIS income, record CIS deductions, store receipts and submit quarterly updates, you can manage it all from one place.
Frequently Asked Questions
Yes, if your qualifying income is above the relevant threshold. MTD for Income Tax applies from 6 April 2026 for qualifying income over £50,000, from April 2027 for income over £30,000, and from April 2028 for income over £20,000. For CIS subcontractors, this is based on gross income before expenses and CIS deductions.
Each month, your contractor should give you a CIS statement showing your gross pay and the CIS deduction taken. In Coconut, you can record your income and CIS deduction digitally, or use bank feeds to help keep payments organised. Those records then support your quarterly update and year-end tax return.
Coconut's MTD filing plan is £129.99 a year, or £21.99 a month, and includes quarterly MTD updates, your year-end return and dedicated MTD support. The Bookkeeping plan starts from £99.99 a year. Both plans come with a 14-day free trial and no card details required.
CIS subcontractors need accounting software that can help them track business income, expenses, receipts, invoices and CIS deductions. Coconut is designed for self-employed people working in the construction industry, so you can keep records organised and prepare for Making Tax Digital without using a complex accounting package.
If MTD for Income Tax applies to you, yes. You'll need to keep digital records and use approved software to submit quarterly updates to HMRC. CIS deductions themselves do not change, but your income, expenses and CIS records need to be kept digitally once you are within the MTD rules.
No. Contractors still deduct CIS tax from your labour at source, usually at 20% if you're registered or 30% if you're not. Making Tax Digital changes how you keep and report your records, not how CIS deductions work. Coconut helps you keep those deductions recorded alongside your income and expenses.
Yes. MTD does not remove your ability to reclaim overpaid CIS tax. Your year-end tax return or finalisation process still checks the CIS tax already deducted against the tax you actually owe. Coconut helps keep your CIS deductions and income records organised, so the reclaim process is easier to manage.
Not usually if you use Coconut's MTD software. Bridging software can help people submit information from spreadsheets, but many CIS subcontractors prefer software that also helps with day-to-day record keeping. Coconut helps you track income, expenses, CIS deductions, receipts and quarterly updates in one place.
Find out more about Coconut's bridging software.
Coconut is designed for non-VAT registered businesses. If you also have VAT responsibilities, you'll need to make sure you have the right setup for MTD VAT as well. It's worth checking what applies to your business before choosing software.
Yes. Coconut can make working with your accountant easier because your income, expenses, receipts, invoices, CIS statements and digital records are kept in one place. That means less digging through paperwork and fewer spreadsheet headaches when your accountant needs to check your tax position.
Get started with Coconut today
Preparing early means less stress when Making Tax Digital applies to you.
With Coconut, you can keep your CIS records organised, track income and expenses, see your tax estimate and get ready to submit updates to HMRC through HMRC-recognised software.
Start your free 14-day trial today and see how Coconut works for your construction business.
No card details required- FCA authorised
- Bank level security
