Making Tax Digital (MTD) is continuing to roll out across the UK, and for many spray business owners, the next phase will bring significant changes to how income is reported and managed.
If you’re self-employed or running a small spray business, it’s important to understand what’s coming - and what you should be doing now to stay ahead.
Making Tax Digital is a government initiative from HMRC designed to modernise the UK tax system. The goal is to move businesses away from paper records and annual tax returns, towards digital record-keeping and more frequent reporting.
MTD is already in place for VAT-registered businesses, but the next phase — MTD for Income Tax (ITSA) - will directly affect many tradespeople, including sprayers.
From April 2026, MTD for Income Tax will apply to self-employed individuals and landlords with a total business or property income over £50,000.
From April 2027, this threshold will drop to £30,000, bringing in a large number of small trade businesses.
If you’re running a spray business, there’s a strong chance you’ll fall into one of these categories.
Under MTD, the biggest shift is how often and how you report your income:
This means moving away from spreadsheets and paper receipts towards MTD-compatible software.
Even if you’re not required to comply until 2026 or 2027, now is the time to get prepared.
Here’s what you should be focusing on:
1. Move to Digital Accounting Software
If you’re not already using software like Xero, QuickBooks, or FreeAgent, it’s worth making the switch now. This will make the transition much smoother.
2. Keep Records Up to Date
Get into the habit of logging income and expenses regularly, rather than leaving everything until year-end.
3. Speak to Your Accountant
Your accountant should already be preparing for MTD. If they haven’t mentioned it yet, it’s worth having a conversation about how it will affect your business.
4. Separate Business and Personal Finances
If you’re not already using a separate business account, now is the time. It will make digital record-keeping far easier.
5. Understand Your Numbers
Quarterly reporting means you’ll have a clearer picture of your business performance throughout the year - but only if your records are accurate.
While MTD may feel like another layer of admin, it also brings opportunities.
Spray businesses that embrace digital systems early will benefit from:
Making Tax Digital isn’t something to ignore or leave until the last minute. The earlier you adapt, the easier the transition will be.
For UKSA members, this is part of a bigger picture - running a professional spray business isn’t just about the finish, it’s about how the business operates behind the scenes too.
If you’re unsure where to start, speak to your accountant and begin moving towards digital systems now - your future self will thank you.
