Do you need to use MTD?
MTD applies to sole traders and landlords. For cleaners, this usually means you are in scope if you run your own cleaning business as a sole trader. You do not need to use MTD if you are employed by a cleaning company and paid through PAYE.
The requirement is based on your qualifying income from the previous tax year. This is your total turnover from self-employment before you deduct any expenses. If you also have rental income, you add this to your cleaning income to see if you cross the threshold.
| Qualifying income in previous year | When you must use MTD |
|---|---|
| Over 50,000 pounds in 2024-25 | From 6 April 2026 |
| Over 30,000 pounds in 2025-26 | From 6 April 2027 |
| Over 20,000 pounds in 2026-27 | From 6 April 2028 |
If your qualifying income is 20,000 pounds or less, you are automatically exempt from MTD ITSA. This exemption is permanent. Note that the threshold is tested as 'more than' the figure. Exactly 50,000 pounds is not over the 50,000 pound threshold.
What counts as qualifying income?
Qualifying income is the total income from your self-employment and property business before expenses. For a cleaner, this is the total amount charged to clients for services provided. It does not include income from other sources such as PAYE employment, dividends, or state pensions.
If you have multiple cleaning clients, you add all their payments together. If you also rent out a property, you add that rental income to your cleaning income. If the combined total exceeds the threshold for the relevant year, you must use MTD.
Quarterly updates
Instead of sending one big tax return at the end of the year, you send four smaller updates to HMRC. Each update is a summary of your income and expenses for that period. These are not tax returns, but they help build up your tax position throughout the year.
You must send an update even if you had no income or no expenses during that period. The categories used in these updates match the standard Self Assessment categories.
| Period ends | Update deadline |
|---|---|
| 5 July | 7 August |
| 5 October | 7 November |
| 5 January | 7 February |
| 5 April | 7 May |
You can send updates more often than quarterly, but each update must cover the full period since the last one. After each update, you can see an estimate of your tax bill in your software or in HMRC online services.
Digital records for cleaners
You must keep digital records of your income and expenses. For a cleaning business, this includes invoices sent to clients and receipts for business costs. Common expenses for cleaners include cleaning products, equipment, and mileage.
A digital record is created and stored in compatible software. You cannot keep these records on paper or in a spreadsheet that is not linked digitally. Once a record has been sent to HMRC in a quarterly update, it must not be changed by hand. This means no writing it out in another cell or copying and pasting it into a different product.
Mileage and materials
If you use your own car to travel between clients, you can claim mileage. You can use simplified expenses rates or actual costs. Whichever method you choose, you must keep digital records of the journeys and the costs involved.
For cleaning supplies, keep digital copies of receipts. If you buy products from a supplier, the invoice should be stored in your software. If you use a card, the transaction record must be imported into your software digitally. You cannot just type in the total at the end of the month if the individual transactions are not linked.
Penalties for missed deadlines
If you miss a quarterly update deadline, you get one penalty point. If you miss the tax return deadline, you also get one penalty point. The points system applies to submissions from tax years after 2026-27.
For the 2026-27 tax year, there are no penalty points for missing a quarterly update deadline. However, you must still send the updates and keep digital records. Penalty points still apply to the tax return deadline for 2026-27.
- 4 penalty points results in a 200 pound penalty.
- Each further missed submission deadline adds another 200 pound penalty.
- If you are below the threshold, points are removed automatically after 24 months.
- If you are at the threshold, you need 12 months of on-time submissions to remove points.
Signing up for MTD
To use MTD, you must be registered for Self Assessment and have submitted a tax return in the last two years. You sign up for each income source separately if you have more than one. For most cleaners, this means signing up for your self-employment income.
From September 2026, HMRC will sign up anyone who needs to use MTD for 2026-27 and has not already done so. This happens in stages using information HMRC already holds. You will receive a confirmation in your HMRC online services or by post.
Using software
HMRC does not provide software. You must use compatible software to keep digital records and send quarterly updates. The software must be able to create and store records, work with your chosen accounting period, and send updates to HMRC.
TradeKit is MTD ready - recognised by HMRC (reference D4K6ZS). Compatible software allows you to record income and expenses as they happen. You can then send the quarterly updates directly from the app. This ensures your records are digitally linked and compliant with HMRC rules.