Help Centre · MTD ITSA · 2 min read

Business settings: accounting type and quarterly periods

The per-business settings that shape how figures are reported: cash or accruals accounting, standard or calendar quarters, and full or consolidated expenses.

Tax Optimiser Updated 23 Jul 2026

A few settings on each business decide how its figures are reported. They are shown on the business detail page, each with a Change button.

A self-employment business detail page showing accounting type, commencement date, quarterly period type and the late accounting date election card

Accounting type

This is how you add your income and expenses up:

  • Cash basis — you count money when it actually comes in or goes out. Simpler, and the default for most sole traders and landlords.
  • Accruals (traditional) basis — you count income and costs when they are earned or incurred, regardless of when the money moves.
The Change Accounting Type dialog offering Cash or Accrual for the tax year

Choose the basis that matches how you report to HMRC, then Confirm Change.

Quarterly period type

This sets the dates your four quarterly updates run to:

The Change Quarterly Period Type dialog offering standard or calendar quarters
  • Standard — quarters aligned to the tax year (6 April–5 July, and so on). The default.
  • Calendar — quarters aligned to calendar month-ends (to 30 June, 30 September, and so on), which is often easier to reconcile against bookkeeping.

Expense reporting: full or consolidated

Each business also chooses how its expenses go to HMRC in the quarterly updates:

  • Full — expenses itemised by category (admin costs, travel, cost of goods and so on), each with an allowable and a disallowable amount. The default.
  • Consolidated — one single total of all allowable expenses for the period, with no category breakdown. Simpler bookkeeping for smaller businesses.

Consolidated expenses can only be used while the business earns less than £90,000 a year (annual turnover, or annual property income for a property business). Above that, HMRC rejects the update and you must report full itemised expenses.

The choice is made in the quarterly obligation’s Settings dialog — the same place you map your spreadsheet cells (see Keeping digital records) — and the current choice is shown on the business detail page. It also decides which example spreadsheet the quarterly upload offers you.

Other details

  • Commencement date — when the business started, as held by HMRC.
  • Late Accounting Date Rule Election — a specialist election for businesses whose accounting date sits late in the tax year; the card lets you view, apply or withdraw it. Most businesses never need it.

Next: Keeping digital records.

The short version

Business settings: accounting type and quarterly periods — in brief

Accounting type sets how you total income and expenses: cash basis (when money moves, the simpler default) or accruals (when earned or incurred).

Quarterly period type sets your update dates: standard quarters aligned to the tax year, or calendar quarters aligned to month-ends.

Expense reporting is full (itemised by category) or consolidated (one total of all allowable expenses) - consolidated is only allowed while the business earns under £90,000 a year.

The business page also shows the commencement date and the specialist late accounting date rule election, which most businesses never need.