Joint Taxation Committee Newsline for January 2026

The latest issue of the Construction Industry Joint Taxation Committee (JTC) newsletter, JTC Newsline, is out now. 

Alongside the usual round-up of the latest news on changes to the rules and rtegulations for tax in the construction sector - from the recently published Scottish Budget to a reminder about tax returns (due 31 January) - this issue also includes a detailed analysis from freelance financial writer Rosie Murray-West of a new system called Making Tax Digital (MTD), which comes into force in April. 

Under the new rules lots of smaller firms and sole traders in the construction sector will be required to change how they report earnings to HMRC. The new system will require contractors earning over £50,000 to report their earnings quarterly (even as tax payment deadlines will remain unchanged). MTD will require firms to use compatible software for their returns, with HMRC having developed a useful software finder tool. If you are set up as a limited company, you will not be affected. 

HMRC will use this year's tax returns to see whether people hit the threshold for MTD and will then write and tell you. If you have an accountant, they should be able to help you understand more about the new system and what it means for you.

One very important point highlighted by Murray-West is that MTD is separate from the Construction Industry Scheme (CIS). Just because you are operating as a subcontractor under CIS you can't assume you won't need to submit returns under MTD. The two schemes are separate and if you hit the qualifying threshold you will be liable to make a return under MTD.       

If you are a NASC member, login to view the PDF. Otherwise, contact [email protected] to enquire about membership or email Wendy Bradley at [email protected] to subscribe to the newsletter.