Explanation of ITSA categories

ITSA categories help HMRC identify different types of income and expenses. 

Data sent to HMRC

Each quarterly update includes cumulative data for the tax year. It summarises your income and allowable expenses categorised by ITSA categories.

Submission deadlines

Send quarterly updates to HMRC within one month after each quarter ends.

No penalties apply during the Beta phase, providing flexibility while you familiarise yourself with the process.

Handling disallowable values

Disallowable expenses are costs you can't claim for tax purposes. Sage Accounting doesn't submit disallowable transactions. Assign these transactions to the Not reportable ITSA category to exclude them from quarterly updates.

Accuracy of your records

You don't need to be completely accurate for quarterly updates. Final accuracy is only required at the end of the tax year, giving you time to make corrections.

Viewing transaction-level details

You can access detailed transaction information directly within Sage Accounting.

• Use the Chart of Accounts report to see ledger categories mapped to ITSA categories
• Run the Nominal Activity report for transaction-level details in each ledger category