How to submit your Making Tax Digital (MTD) for Income Tax quarterly update in Sage Accounting. Review your figures, complete the required checks, and send your update to HMRC.
Description
Throughout the tax year, you must submit four quarterly updates to HMRC.
Each update includes cumulative income and allowable expenses for your selected income source.
You can only submit one income source per Sage Accounting company.
Before submitting, review your figures and complete the end-of-quarter checks.
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Open your quarterly update
Go to Reports, then select Income Tax.
Select Go to Income Tax summary.
Select Open quarterly update.
Review your figures
Before sending your update:
Check your income and expenses are complete
Confirm all ledger accounts have Income Tax categories assigned
Confirm your ownership percentage is correct if you share a rental property
You can drill down into figures to review the transactions included in each category.
NOTE:
Your update includes all year-to-date figures up to yesterday. This fulfills your quarter one obligation and provides an accurate tax estimate based on your latest records. Updates are cumulative, so any future submissions to HMRC updates all records from the beginning of the tax year.
Send your update
Select Send to HMRC.
Confirm your submission.
HMRC processes your update after submission.
NOTE:
The status can take up to 60 minutes to update.
Complete extra checks for your fourth quarter only
Before sending your fourth quarterly update, complete the checklist to ensure your records are ready for year end.
You don't need to complete this checklist for quarters one to three.
The checklist guides you to:
Review all income and expenses
Process draft bank transactions
Post draft sales invoices
Post draft purchase invoices
Fix missing Income Tax categories
Resolve any missing categories before submitting your fourth update.