Accounting for tradesmen — keep money boring and honest
You do not need to become an accountant. You need clean records: what you earned, what you spent, what is VATable, and what is CIS. Capture little and often — not a January shoebox panic. Pro Quoter keeps income and expenses closer to the job so your accountant gets structure, not chaos.
The tradesman accounting stack (simple version)
Bank feed + categories is not enough if you cannot tie spend back to jobs. Job-led records help you see profit per job, not just a bank balance.
- Separate business spending where possible
- Keep receipts (photos are fine)
- Invoice consistently
- Reconcile CIS deductions if you suffer them
VAT, CIS, self-assessment — know your lane
If you are near VAT thresholds or work under CIS, rules bite faster than you expect. Software will not replace an accountant — but it stops you turning up with a shoebox.
Where Pro Quoter helps
Financial Hub and records keep income and expenses next to quotes and jobs — built by a tradesman for low admin, not corporate dashboards.
Pair with your accountant’s advice for tax positions — the win is consistency, not spreadsheets you dread opening.
The tradesman tax calendar
Self-assessment tax returns are due 31 January for the previous tax year. Most trades are surprised how quickly the year accumulates if records are not kept weekly. A return built from proper records takes hours; one built from memory and bank statements takes days.
Quarterly habit: reconcile bank, check outstanding invoices, file expenses by category. Weekly habit: photo receipts, log mileage if you claim it, note job numbers on material purchases.
- January 31 — self-assessment deadline
- July 31 — second payment on account due if first exceeded 1,000
- VAT returns quarterly if registered — MTD-compliant records required
- CIS monthly return if you are a contractor paying subbies
Job-led records — why they beat a bank ledger
A bank ledger shows money in and money out. A job-led record shows which job the money came from, what materials you bought for it, and whether the invoice matches the quote. That context matters when a customer disputes an invoice or HMRC asks about a period.
Pro Quoter keeps income and expenses next to quotes and jobs — built by a tradesman for low admin, not corporate dashboards. Pair with your accountant for tax positions that need professional judgement.
FAQ
- Do tradesmen need accounting software?
- You need reliable records. Whether that is accounting software, job software with exports, or a disciplined spreadsheet depends on volume. Most trades benefit when quoting and money live in one ecosystem.
- What expenses can a tradesman claim?
- Tools, van costs, materials, protective clothing, phone and broadband (business proportion), training, professional subscriptions, accounting fees and some home-office costs if you have a dedicated space. Keep receipts for everything — photo on the day.
- How do I handle CIS as a subcontractor?
- Your contractor deducts CIS at 20% (or 30% if not registered) and pays it to HMRC on your behalf. You offset it against your tax bill at self-assessment. Log each deduction with the contractor name and amount.