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Over to FreeAgent’s Chief Accountant… “HMRC have said themselves that quarterly updates don’t count as tax returns and don’t have to be 100% accurate,” says Emily Coltman FCA.
Making Tax Digital (MTD) for Income Tax introduces a new reporting rhythm for sole traders and landlords, requiring digital quarterly updates rather than waiting until the year end. But how much accuracy is actually needed in these submissions? FreeAgent’s latest article breaks down what counts as a quarterly update, why it doesn’t have to be as detailed as a full tax return, and how to approach these reports in practice.
Importantly, the guidance confirms that quarterly updates do not need to be 100% accurate to be acceptable to HMRC, but checking your figures soon after the period closes can save time and confusion later. The article also explains how making updates regularly can offer a clearer view of your business finances and reduce the year‑end admin burden.
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