Definition and contents of quarterly updates

Quarterly updates are simple three-month check-ins of your self-employment and property income. Every three months, your compatible software totals your digital records and sends HMRC aggregated figures for each category of income and expense.

This is not a full tax return. You do not need accounting adjustments such as accruals or capital allowances before sending an update. HMRC sees only totals by category, not individual receipts or invoices.

There is no formal declaration with a quarterly update, and HMRC does not apply inaccuracy penalties at this stage. In short, quarterly updates are reporting only — not final tax calculations.

• What is included: total income and total allowable expenses for the period (for each business or property). Not individual transactions.
• Separate businesses: if you have more than one income source (for example, two trades, or a trade and a property), send one update per source. Each summary covers that source only.
• No adjustments needed: use your best estimates in-year. Fine-tuning happens in your year-end tax return.
• Cumulative totals: each update covers all activity from the start of the tax year up to the quarter end (see Cumulative updates below).
• Small errors: because updates are summaries, minor mistakes are not penalised during the year. HMRC picks up permanent adjustments at year-end.

HMRC's technical categories include sole trade, UK property, foreign property (commercial and residential), and EEA furnished holiday letting (subject to ongoing rule changes after FHL abolition).