PHAM NEWS | FEBRUARY 2026 Business Matters


Why software doesn’t have to be scary for SMEs


Simon Dennis, business engagement manager for Pipe Centre and Climate Centre, addresses some of the most common perceived challenges for SMEs navigating an increasingly digital landscape.


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ntegrating software and digital processes into everyday processes continues to save money, boost effi ciency and


enhance decision-making for construction companies of all sizes. Now, with the help of supply


chain partners such as Climate Centre and Pipe Centre, even the smallest of SMEs can access advanced, aff ordable tools to help streamline common tasks including estimating and take- off s. However, not everybody is


quite ready to embrace change - despite the benefi ts, there remains some trepidation about going paperless. Let’s explore some of the


common misconceptions – and why SMEs should not be letting them get in the way of progress. “It’s too expensive for small


businesses” – The perception that software adoption requires large-scale investment is one of the biggest barriers to change. In reality, most digital tools aimed at SMEs operate on a Software as a Service (SaaS) model – low- cost monthly subscriptions that include updates, support and cloud access. There’s no need for expensive servers or licences, and many platforms are scalable, meaning contractors can start small and expand as they grow. Our Partner Programme


gives SME contractors access to leading software from third parties such as Simpro that help them to run their business better.


Get ready for Making Tax Digital


Rob Rees, divisional director at specialist insurer Markel Direct, explains what Making Tax Digital involves, who will be aff ected and how to prepare.


The UK self-assessment system is set to undergo a major change from April 2026, when Making Tax Digital for Income Tax Self- Assessment (MTD for ITSA) comes into eff ect. The new rules will change how many self-employed individuals report their income to HMRC, moving away from a single annual tax return to more frequent digital reporting. By addressing the most


common avoidable mistakes, such as missing deadlines or failure to declare all income, MTD for ITSA aims to improve accuracy. The fi rst phase of Making Tax


Digital applies to sole traders earning over £50,000. The threshold will be based


on the income reported in the 2024/25 tax return, with the


government projecting around 780,000 people falling into this


category. Those earning between £30,000 and £50,000 will follow from April 2027, based on the income reported in the 2025/26 tax return, whilst those earning under £30,000 are still under review and have the option to sign up voluntarily.


How to prepare Tax returns can be daunting for any business, especially for sole


Simon Dennis Business engagement manager for Pipe Centre and Climate Centre


We’ve hand-picked tools that add value, and often the fi nancial benefi ts quickly outweigh the modest subscription fee. Software solutions that


automate quotations or build digital parts lists don’t just save time, they reduce errors and costly rework. In doing so, they typically save more than they cost. “The systems are too


complicated” – Another common misconception is that digital platforms require specialist training or technical know-how. Modern contractor software has evolved precisely to counter that fear. User interfaces are intuitive and designed for fi eld teams as much as they are technical offi ce staff , often


mirroring the look and feel of apps that people are using in their everyday lives. Many solutions integrate with


accounting or ordering systems already in place, as well as connecting with our own systems for a completely seamless solution. Simple tasks like generating a quotation or creating a materials take off can be done in a few clicks rather than re-entering product codes across diff erent spreadsheets. These tools are far removed from the ‘tech headache’ that many still imagine. “We’ll lose control of our


data” – Data security is a genuine concern, especially for businesses handling client details or sensitive pricing. But cloud-based software is among the most secure IT environments available, with encryption and multi-factor authentication as standard. In most cases, this represents a signifi cant improvement over legacy desktop systems or even paper-based fi ling, which are far more open to loss, damage or misuse. Suppliers and service


providers are also subject to strict data-protection standards. For contractors working with reputable partners, digitalisation actually enhances control, providing full audit trails, instant retrieval of historical information and real-time reporting. “I prefer going into branch”


– For many of our customers, the branch visit is part of the daily routine – a chance to catch up with the team, check new stock


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or grab a coff ee. That isn’t going away. Digital tools off er choice and fl exibility, not replacement. Digital ordering systems linked


directly to your Climate Centre or Pipe Centre trade account mean you can check real-time stock availability, compare prices and arrange collection or delivery at your convenience. The time saved on admin or travel can be redirected to more valuable work, whilst still maintaining that personal connection at branch level when it suits. In practice, the most successful


contractors use a mix of both – the speed and accuracy of digital processes, combined with the trusted relationships forged in face-to-face interactions. “My business is too small to


benefi t” – It’s easy to assume that digital transformation is something only the big players need to worry about, but the effi ciencies created by automating repetitive or time- consuming tasks arguably have a greater impact on smaller fi rms, where every hour counts. A small plumbing or HVAC


contractor, for example, can use software to produce estimates in minutes using live pricing from our advanced systems. And you don’t have to reinvent your own


traders who manage their tax aff airs without an accountant. To help you stay ahead of the game, here are four key takeaways to consider ahead of the transition.


• Adopt HMRC-compatible software early: From April 2026,


all quarterly submissions will need to be made using HMRC- approved accounting software by sole traders, freelancers and landlords who exceed the qualifying threshold. Spreadsheets and manual uploads will no longer be acceptable.


• Get into the habit of tracking expenses monthly: Instead of


storing receipts and invoices for submission at the end of the tax year, get into the habit of recording business transactions monthly.


• Seek professional accounting support: An accountant will be able


to provide guidance on whether a self-employed person is meeting the new MTD reporting standards.


systems too – many platforms allow for fl exible integration, so they can be confi gured to match the workfl ows you’ve already built. It’s also not an all-or-nothing


decision. Businesses can start with one area, such as estimating, and expand gradually as confi dence grows.


Unlocking progress The pace of change across construction is accelerating. Government frameworks and larger clients increasingly expect digital documentation and transparent audit trails, so taking early steps now will pay dividends later. But digitalisation shouldn’t be seen as a burden – instead, it’s an opportunity for growth. Access to integrated software


through a trusted supply partner means SMEs can harness the same effi ciencies once reserved for large contractors, including accurate live pricing, live stock availability, automated workfl ows and connected data from order to invoice. The result is more professional output, better cash management and a stronger competitive edge. The question for many is no


longer whether to go digital, but how soon they can start. ◼ phamnews.co.uk/226/21


Engaging one early on, before the system changes, gives time to address gaps in current record- keeping and/or software setup.


• Set reminders for quarterly submission dates: From April


2026, sole traders and landlords earning over the £50k qualifying threshold will no longer have just one tax deadline to consider, but instead fi ve. To allow adequate preparation time, individuals should set reminders to avoid any potential late penalties.


Looking ahead As Making Tax Digital approaches, early preparation will help reduce disruption. Understanding the new reporting obligations, maintaining accurate records and using compliant software will be essential to navigating the transition smoothly and avoiding unnecessary penalties. ◼ phamnews.co.uk/226/22


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