Throughout the tax year, you submit four quarterly updates to HMRC. This allows the software to estimate your income tax liabilities.

Submission process

1. From Settings, go to Business settings.
2. Within Financial settings, select Income Tax.
3. Select Go to Income Tax summary, then select Open quarterly update.

    NOTE: If you haven't connected your account to HMRC for income tax yet, see our article: Connect your software to HMRC for income tax. 

4. Check the information within the Income Tax update is accurate. 
5. When you're ready, select Send to HMRC. 
6. Confirm your submission, then HMRC will process your update.

Once HMRC finish processing your update, the quarterly update status changes to reflect this.

 NOTE: The status can take up to 60 minutes to update. 

End-of-year checklist

Before you send your fourth quarterly update, complete the checklist to make sure you have no missing data.

The checklist guides you to:

• Check all income and expenses – Review outstanding transactions and confirm nothing is missing
• Process draft bank transactions – Check for draft bank transactions for the tax year
• Save and send draft sales invoices – Post any draft sales invoices for the tax year
• Save draft purchase invoices – Post any draft purchase invoices for the tax year
• Check Income Tax categories are assigned correctly – Confirm all ledger accounts have Income Tax categories

 NOTE: If you have ledger accounts with missing categories, you must fix these before completing the update. 

After completing the checklist, you can proceed to review the update and send it to HMRC.