Self Assessment Software: 2026 Update for CIS Returns Clients

Self assessment software for CIS subcontractors must do three jobs in 2026: record your gross pay with the Construction Industry Scheme (CIS) deductions beside it, keep digital records, and send quarterly updates if Making Tax Digital for Income Tax applies to you. If you drive for Uber or Bolt and also take subcontract work under CIS, your software has to cope with both income streams at once.

This 2026 update is for drivers who mix platform work with labour paid under CIS, such as van work, courier jobs for a building firm or weekend site shifts. It does not repeat the basics. For those, read our guide to self assessment software and Making Tax Digital, how to use self assessment software for personal tax and self assessment software and payroll questions. Here we focus on what changes when CIS income sits on the same return.

Key takeaways

• Your software must treat CIS deductions as tax already paid, never as a business expense.
• Record gross pay (before the deduction) as income, and match every figure to your contractor's monthly payment and deduction statement.
• If your qualifying income is over £50,000, Making Tax Digital for Income Tax applies from 6 April 2026 and quarterly updates join the once-a-year return.
• Uber, Bolt and CIS income can be separate income sources inside one set of digital records, so check how your chosen product handles several businesses.
• HMRC adds CIS deduction figures to your return, but you must still check them against your statements before you submit.

What is self assessment software for CIS?

Self assessment software for CIS is a program or app that records your income, expenses and CIS deductions digitally, works out your tax, and sends information to HMRC. It lets a subcontractor claim deductions as tax already paid, and from 2026 it may also need to be compatible with Making Tax Digital.

The word software covers a wide range. It can be a full online bookkeeping package, a mobile app, or a spreadsheet joined to bridging software. HMRC explains in its guidance that you need software that works with Making Tax Digital for Income Tax to create and store digital records, send quarterly updates and submit your return. The right choice depends on your income level, how many income sources you have and whether you want an accountant involved.

Key terms

• CIS (Construction Industry Scheme): HMRC's scheme where a contractor deducts tax from a subcontractor's pay and passes it to HMRC.
• Subcontractor: someone who does construction-related work for a contractor, often self-employed.
• UTR (Unique Taxpayer Reference): your 10-digit HMRC reference, which contractors use to verify you.
• Gross payment status: an approval that means contractors pay you without taking deductions.
• MTD (Making Tax Digital): HMRC's rules for digital record-keeping and online reporting.
• Qualifying income: the income figure HMRC uses to decide whether MTD for Income Tax applies to you.
• Bridging software: a tool that links spreadsheet records to HMRC without retyping them.

How does CIS change what my software must record?

CIS changes your records because each payment has two figures: the gross amount for your labour and the deduction your contractor took. According to HMRC's guidance for CIS subcontractors, you record your pay before deductions as income and the deductions as CIS deductions. Software must keep those two numbers apart.

The deduction is not a cost of running your business. It is a payment on account of your Income Tax and National Insurance. Entering it as an expense is the most common error we see, because it makes your profit look smaller than it is and can produce a wrong tax figure.

Check three further points. First, the software should let you attach a contractor name to each payment, so you can match statements later. Second, it should separate labour from materials you paid for, because HMRC says contractors do not take deductions from certain items, including materials you have paid for directly. Third, it should keep VAT out of your income if you charge it. Our CIS returns FAQ for drivers covers the wider scheme rules.

What rates does a contractor deduct?

HMRC says the standard rate is 20% if you are registered for CIS and the contractor can verify you. Otherwise, contractors deduct 30%. If you have gross payment status, they take nothing. Your software should let you record whichever rate applied, because rates can differ between contractors in the same month.

How do I import or enter CIS statements?

Enter CIS statements by logging each contractor's monthly payment and deduction statement against the right tax month, or by importing a CSV file if your software allows it. HMRC says contractors must give you a statement within 14 days of the end of each tax month. Keep every one.

Most software gives you one of a few ways to record this data. Follow these steps whichever method you choose.

1. Gather your statements. Ask each contractor for any missing ones, as HMRC says you can request replacements.
2. Create a separate income source or category for CIS work, apart from your Uber or Bolt earnings.
3. Enter the gross amount and the deduction for each statement, or import them from a CSV file if the software supports it.
4. Check that your running total of deductions matches the sum on your statements.
5. Save a copy of every statement with your digital records, in case HMRC asks for evidence.
6. Repeat each month so your quarterly updates are always ready.

Tax months run from the 6th to the 5th, not from the 1st. Many drivers log earnings by calendar month by habit. If your records use calendar months, label your statement totals clearly so they still reconcile.

Do CIS subcontractors need Making Tax Digital in 2026?

CIS subcontractors need Making Tax Digital for Income Tax from 6 April 2026 if their qualifying income from self-employment and property is over £50,000. According to HMRC's Making Tax Digital collection page, you must be registered for Self Assessment and have that income level. Below £50,000, you can still choose to join voluntarily.

Qualifying income is a specific measure, so do not guess. HMRC publishes a definition on its sign-up page, and we recommend reading it before you decide. Later start dates for lower income levels have been announced, but check the current figures and dates on GOV.UK rather than relying on a blog post, including this one. Our guide on Self Assessment versus Making Tax Digital sets out the difference in plain terms.

From September 2026, HMRC started signing up people whose records show qualifying income above £50,000 in the 2024 to 2025 tax year and who had not signed up themselves. If you receive a letter, read it and act on it. If you do not hear anything and think you are over the line, sign up yourself.

How do quarterly updates work with CIS deductions?

Quarterly updates are summaries of your income and expenses, sent every three months through compatible software. HMRC explains that they are not tax returns, and that you need not make tax adjustments first. CIS deductions are not a business expense, so they stay out of the expenses totals.

For 2026 to 2027 the deadlines are 7 August, 7 November, 7 February and 7 May. HMRC says there are no penalty points for late quarterly updates in that first year, but you must still send them before you can submit your return. Do not treat that as permission to ignore them.

Each update covers the whole period from the start of the tax year, so a later update can correct an earlier one. You can also pick calendar update periods, which suit people whose accounts run from 1 April to 31 March. HMRC says you must choose before your first update.

Where do the deductions show up?

Your quarterly update carries income and expense totals. The deductions appear when HMRC builds your return. HMRC's guidance on submitting your tax return lists CIS subcontractor deductions among the information it adds for you. You must check that figure before you submit, because it can differ from your statements.

How do I combine Uber income and CIS income in one set of records?

You combine them by keeping each as its own income source in your software, then letting the software total them for your return. Both are usually self-employment, so they sit on the same self-employment pages of your return, but separate records make your quarterly update and your tax estimate easier to check.

HMRC's guidance explains that you send quarterly updates for each self-employment business you have. Whether HMRC treats your platform work and your CIS work as one business or two depends on the facts, so ask a qualified accountant if you are unsure. Our CIS tax checklist for self-employed drivers explains the common patterns for drivers.

Ask any software provider these questions before you commit: can it hold more than one income source, does it record a deduction against each payment, and does it show a combined tax estimate? Also check whether it lets you correct a past quarter without starting again.

What should I compare when choosing software?

Compare software on CIS handling, Making Tax Digital compatibility, record-keeping, support and cost. A product that suits a driver with one income source may fall short once CIS payments arrive. Use the table below as a checklist, then test any product with a free trial before paying.

HMRC's record-keeping guidance says digital links can be formulas in linked spreadsheet cells, or file exports and imports. It says you must not copy and paste between tools. If you use a spreadsheet, you will need bridging software to send updates.

What is a worked example of CIS and Uber income together?

A worked example shows how the numbers sit together. The driver below is invented, and every figure is for illustration only. It shows why the deduction is a credit and not a cost, and how combined income can pass the £50,000 qualifying income level.

Notice that the £7,200 appears in the CIS deductions box, not in expenses. Had Sam entered it as an expense, profit would drop to £37,800 and the tax figure would be wrong. Our tax calculator gives a rough idea of a bill, but your accountant should confirm the real figure.

What if I have gross payment status or a limited company?

If you have gross payment status, contractors pay you in full and you pay your own tax, so your software must not expect a deduction. If you trade through a limited company, the process differs: HMRC says companies claim deductions through payroll, not on a Self Assessment return.

HMRC's guidance says a company sends its Full Payment Submission as usual, then an Employer Payment Summary with the year-to-date CIS deductions. It warns that using a Corporation Tax return to claim them can lead to a penalty. Company records and payroll are a different job from the personal return covered here, so see self assessment software and payroll questions for the payroll side.

If you are weighing up a company, read about sole trader versus limited company for Uber drivers first. Most drivers stay as sole traders.

What are the common mistakes and what do they cost?

The common mistakes are entering deductions as expenses, losing statements, missing quarterly updates and ignoring a letter from HMRC. Each one has a cost, from a wrong tax figure to penalty points. Check the current penalty rules on GOV.UK, because HMRC changed them for Making Tax Digital.

According to HMRC's penalties guidance, the new points-based system gives a penalty point for each missed quarterly update or return deadline after the first year. At 4 points, a £200 penalty applies. Late payment penalties work separately. Professional help is wise if HMRC disputes a claim or you receive a penalty notice.

How UK Driver Accountants helps

UK Driver Accountants is a UK accountancy for drivers, with fixed fees from £20 a month and no hourly billing. We are independent of Uber and Bolt. For subcontractors we run your CIS figures, match statements and file your return. See our CIS returns service and our pricing page.

If Making Tax Digital applies to you, our Making Tax Digital service handles digital records and quarterly updates for you. We work with drivers only, so we understand how platform income and construction work sit side by side.

Next steps for CIS subcontractors

Start with your statements. Gather every one for the tax year, work out your qualifying income, and decide whether you are inside Making Tax Digital for Income Tax. Then choose software that records CIS deductions properly, or hand the job to an accountant.

If you want a fixed-fee quote or just a sense check, contact us and we will tell you where you stand. Check GOV.UK for the current rules before you act.

Last reviewed 9 October 2026 by the UK Driver Accountants tax team.

This article is general information and is not personal tax advice. Speak to a qualified accountant about your own circumstances, and take professional representation if HMRC raises a dispute or a penalty.