--- title: "Making Tax Digital for man with a van and removals businesses" description: "Run a man with a van or small removals business? MTD counts your full takings before van and helper costs. What to record, what to claim and each quarter." url: https://mtdmatch.uk/blog/mtd-for-man-with-a-van.html last_updated: 2026-10-26 language: en-GB publisher: MTD Match (independent; not affiliated with HMRC) --- # Making Tax Digital for man with a van and removals businesses House moves, single-item collections, student moves and tip runs – if you run a man with a van or small removals business as a sole trader, Making Tax Digital (MTD) for Income Tax will reach you soon, if it hasn’t already. A van, fuel and a helper on busy days cost a lot, but MTD only looks at your **takings**. A couple of full house moves a week can put you over the threshold even when the profit is much smaller. **In short:** If you’re a self-employed man with a van and your takings (plus any rent) were over £30,000 before costs in the 2025/26 tax year, Making Tax Digital for Income Tax applies to you from 6 April 2027. Over £50,000 and it has applied since 6 April 2026; the threshold is planned to fall to £20,000 from April 2028. You’ll keep digital records in HMRC-recognised software, send four quarterly updates a year (due 7 August, 7 November, 7 February and 7 May) and file a final declaration by 31 January. ## Are you in? It’s your takings, not your profit Add up what customers paid you in the 2025/26 tax year – moves, collections, packing services, materials you sold and deposits – including cash and jobs from marketplace sites, before taking off any costs. If that total (plus any rent from property you let) is over £30,000, MTD applies from **6 April 2027**. Over £50,000 and you have been in since April 2026. ### April 2026: Over £50,000 ### April 2027: Over £30,000 ### April 2028: Over £20,000 planned ## Your work in accountant language What actually happens in your working life, what your accountant and HMRC call it, and what to do about it. | What happens | Accountant calls it | What you do | | --- | --- | --- | | A customer pays a £50 deposit to book a move | Turnover when received (cash basis) | Record the deposit when it arrives. | | They pay the balance in cash on the day | Turnover | Note the cash in your app before you leave the job. | | A job comes through a booking or marketplace site | Gross income + platform fee | Record what the customer paid in full, and the site’s fee as an expense. | | You pay a helper £100 for the day | Allowable expense – labour | Record who, when and how much. Regular helpers may need payroll – check their status. | | You fill up the van and pay the congestion or clean-air charge | Van costs – or mileage instead | Keep receipts, or use 45p/25p a mile for that van, not both. | | You pay for a council tip permit or commercial waste disposal | Allowable expense | Keep the receipt or waste transfer note. | | You buy a new van | Equipment – usually deductible when paid for under the cash basis (vans, not cars) | Keep the invoice and finance agreement. | | You take money out for yourself | Drawings – not an expense | It doesn’t reduce your tax. | | Every three months / after 5 April | Quarterly update / final declaration | Send totals each quarter; finalise the year by 31 January. | ## What can a man with a van claim? ### ✓ Usually allowable - Van purchase, lease or hire, and interest on van finance - Fuel, servicing, tyres, MOT and repairs – or 45p a mile, not both - Van insurance with hire-and-reward cover, and goods-in-transit insurance - Helpers’ wages or day rates - Blankets, straps, trolleys, dollies and ramps - Boxes, tape and packing materials - Waste disposal, tip charges and your waste carrier registration - Advertising and fees on booking or quote sites - Congestion, clean-air zone and toll charges on jobs - Business share of your phone bill ### ✗ Not allowable - Parking tickets and fines - Private use share of the van - Mileage and actual costs for the same van - Meals on the road - Money you take out for yourself (drawings) ## Rules that matter for man with a van and removals ### Vans are treated differently from cars Under the cash basis, a van you buy for the business can usually be deducted when you pay for it, like other equipment. Cars can’t – they go through capital allowances. If you use the van privately too, only the business share counts. If you use mileage rates for the van, you can’t also claim its purchase or running costs. ### Cash and deposits Removals is a cash-heavy trade. Record every deposit and every cash balance on the day. Your takings, including cash, decide whether you are in MTD. ### Helpers: self-employed or employee? A mate who helps now and then for a day rate may be self-employed. Someone who works for you regularly, on your terms, is more likely an employee, which means PAYE. HMRC’s *Check employment status for tax* tool can help. ### Waste carrier registration If you take away rubbish as part of your work, you usually need to be registered as a waste carrier. The fee is an allowable expense. ## Worked example **Gareth runs a man with a van in Swansea (illustrative example)** | | | | --- | --- | | Takings (turnover) | £42,000 | | less Van finance, insurance and tax | −£5,600 | | less Fuel | −£5,200 | | less Helpers’ day rates | −£4,800 | | less Servicing, tyres and repairs | −£1,300 | | less Tip charges and waste carrier fee | −£900 | | less Advertising, booking site fees and phone | −£1,600 | | Profit | £22,600 | | Income tax (estimate) | £2,006 | | Class 4 National Insurance (estimate) | £602 | | Total tax for the year | £2,608 | | Put aside each month | £217 | **In MTD from 6 April 2027.** MTD looks at the £42,000 of takings, not the £22,600 profit. Estimate for 2026/27 using England, Wales & NI rates, assuming no other income. Scotland has different income tax bands. ## What a quarterly update looks like A typical quarter for a man with a van: add up deposits and balances from your diary or bank, include cash from your notes, list helper payments, add fuel, van and tip receipts and any booking site fees – then submit through your software, or let your accountant do it. Logging each job the evening you finish it keeps the quarter to a quick check. | Quarter | Period | Submit by | | --- | --- | --- | | Q1 | 6 Apr – 5 Jul | 7 Aug | | Q2 | 6 Jul – 5 Oct | 7 Nov | | Q3 | 6 Oct – 5 Jan | 7 Feb | | Q4 | 6 Jan – 5 Apr | 7 May | | Final declaration | The whole tax year | 31 Jan following | Quarterly updates are summaries – they don’t change *when* you pay. Tax is still due by 31 January (plus payments on account on 31 January and 31 July if they apply to you). ## What will an accountant cost? Typical monthly fees under MTD for Income Tax for: **Sole trader, one business**. | Option | What you get | Per month | | --- | --- | --- | | **You do it yourself** | MTD-compatible software. You keep the records and send the updates. | **£0–£15** (up to £180 a year) | | **Accountant files for you** | You keep records in an app; they check them, send the 4 quarterly updates and the final declaration. | **£30–£60** (about £360–£720 a year) | | **Full service** | They do the bookkeeping too – you share receipts and bank feeds, they handle the rest. | **£60–£120** (about £720–£1,440 a year) | **What pushes the price up:** lots of transactions every month, or more than one income stream; records kept on paper rather than in an app; being VAT-registered; catching up on missed updates or late returns. ### What a fixed-fee quote should include - All 4 quarterly updates *and* the final declaration (your tax return) - The MTD software licence – or whether you pay for it separately - Whether they do the bookkeeping or only check what you’ve recorded - A reminder before each deadline and an estimate of the tax to put aside - Whether VAT (20%) is added on top – not every practice charges it Accountancy fees for your business are an allowable expense, so they reduce your tax bill. Indicative ranges from published UK price lists, checked October 2026. Not a quote – your fee depends on how many transactions you have, how tidy your records are and where you live. ## Questions man with a van and removals ask ### Most of my jobs are cash. Do I need a business bank account? Not necessarily as a sole trader, but you must record all cash takings digitally. A separate account makes it much easier to see what is business and what is personal. ### Can I claim the whole van? If you use the van only for work and claim actual costs, yes – under the cash basis it is usually deducted when you pay for it. If you also use it privately, only the business share. ### I pay my helper cash. Is that allowable? Yes, as long as you record who you paid, when and how much. Check whether they should be on payroll if they work for you regularly. ### Do jobs from marketplace and booking sites count? Yes. Everything customers pay for your service counts, wherever the job came from. ## Sources - [Find out if and when you need to use Making Tax Digital for Income Tax](https://www.gov.uk/guidance/find-out-if-and-when-you-need-to-use-making-tax-digital-for-income-tax) – GOV.UK - [Work out your qualifying income for Making Tax Digital for Income Tax](https://www.gov.uk/guidance/work-out-your-qualifying-income-for-making-tax-digital-for-income-tax) – GOV.UK - [Send quarterly updates using Making Tax Digital for Income Tax](https://www.gov.uk/guidance/use-making-tax-digital-for-income-tax/send-quarterly-updates) – GOV.UK - [Find software that works with Making Tax Digital for Income Tax](https://www.gov.uk/guidance/find-software-that-works-with-making-tax-digital-for-income-tax) – GOV.UK - [Penalties for Making Tax Digital for Income Tax](https://www.gov.uk/guidance/penalties-for-making-tax-digital-for-income-tax) – GOV.UK This guide is general information about HMRC’s Making Tax Digital rules as of 26 October 2026, not tax advice. MTD Match is an independent introduction service and is not affiliated with HMRC. Check gov.uk or speak to an accountant about your own situation. **Written by the MTD Match team:** We turn HMRC’s Making Tax Digital guidance into plain English for each trade, cite the GOV.UK pages we rely on and update every guide when the rules change. [How we check our guides](https://mtdmatch.uk/methodology.html) · [About us](https://mtdmatch.uk/about.html) ## Related guides - [Couriers and delivery drivers](https://mtdmatch.uk/blog/mtd-for-delivery-drivers.html) - [Driving instructors](https://mtdmatch.uk/blog/mtd-for-driving-instructors.html) - [Taxi and private hire drivers](https://mtdmatch.uk/blog/mtd-for-taxi-drivers.html) - [Your year in accountant language](https://mtdmatch.uk/blog/accounting-terms-plain-english.html) - [What is MTD?](https://mtdmatch.uk/blog/what-is-making-tax-digital.html) - [The £30,000 wave (April 2027)](https://mtdmatch.uk/blog/mtd-30000-threshold-april-2027.html)