Solar & EV Charger Installers · Updated July 2026
✓ HMRC-sourced

Making Tax Digital for Solar Panel and EV Charger Installers —
Materials, Grants & MCS Certification Explained

📅 30 July 2026 ⏱ 7 min read Editorial policy ↗

Materials Are a Bigger Share of Income in This Trade Than Most

Solar and EV charger installation involves some of the highest material costs relative to labour of any construction-adjacent trade — panels, inverters, batteries, and charging units are expensive components that you typically supply and invoice as part of the job. Your qualifying income is the full invoice total, materials and labour combined, before deducting what you paid your supplier. This can make your gross qualifying income look much larger than your actual profit margin, which is worth understanding clearly when checking your MTD threshold.

Grant-Funded Work and CIS Subcontracting

Some installation work is funded partly or fully through government or supplier grant schemes, where the grant is paid to you or deducted from the customer's bill. Either way, the full value of the work you deliver counts as your qualifying income. Installers who also subcontract for larger solar or EV infrastructure firms under CIS follow the standard gross-income rule: qualifying income based on your invoiced amount before the contractor's deduction.

Worked Example

Zara. MCS-certified self-employed installer doing residential solar and EV charger installations, plus some CIS subcontracting for a larger commercial installer.

Direct residential installs (gross, including panels/units): £37,600
CIS subcontract labour (gross, before 20% deduction): £9,400
Total qualifying income: £47,000 — above the £30,000 Phase 2 threshold, below £50,000. Zara joins MTD from April 2027. Because materials make up such a large share of each residential install's invoice value, her margin is much slimmer than her gross qualifying income suggests, but the MTD threshold is based on the gross figure regardless.

What You Can Claim

  • Panels, inverters, batteries, and charging units — claimed at what you paid your supplier
  • MCS certification and scheme membership fees
  • Tools and testing equipment — usually claimed in full via the Annual Investment Allowance
  • Van costs — fuel, insurance, or the 45p/mile mileage rate
  • Public liability and professional indemnity insurance
  • Continuing training — manufacturer certifications, updated regulations courses
Quick Check
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Best MTD Software for Solar & EV Charger Installers

Software links are affiliate, help fund CheckMyMTD. Recommendations based on ease of use for self-employed income tracking.

Frequently Asked Questions

Is my qualifying income the installation price, or my margin after materials?

It's the full invoice amount, materials and labour combined, before deducting what you paid your supplier. Materials are claimed back separately as a business expense, which reduces your taxable profit but not your gross qualifying income.

Does grant-funded work count towards my qualifying income?

Yes, the full value of the work you deliver counts as qualifying income, regardless of whether it's paid by the customer directly or via a grant scheme.

Is my CIS subcontract income assessed before or after the deduction?

Before. Your qualifying income is your gross invoiced amount, not the amount you actually receive after the contractor's CIS deduction.

Can I claim my MCS certification fees?

Yes, professional certification and scheme membership required for your work is a normal allowable business expense.

My gross income looks high because of material costs, but my actual profit is much lower. Does that matter for MTD?

No, MTD eligibility is based on your gross qualifying income, not your profit margin. This does mean installers can be closer to a threshold than their genuine earnings might suggest, worth checking carefully.

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