Use the Tax Settings page in AccountsDesk to manage the settings for an individual Making Tax Digital for Income Tax (MTD ITSA) business. The page supports Self Employment, UK Property and Foreign Property businesses.
You can review expense and allowance options, accounting type and quarterly period type for a business. For a self-employment business, you can also tell HMRC whether it had an accounting period ending in the current tax year and maintain the period dates.
Open Tax Settings
- Select the business you want to configure.
- In the left-hand menu, under MTD Income Tax, select Tax Settings.
- Check that the selected business is the one you intend to update.
Settings belong to the selected business. If you have more than one income source, review each one separately.
Expense and allowance options
The Expense and allowance options section is available for the business types supported by the page.
Use Consolidated Expenses
Select Use Consolidated Expenses when you want AccountsDesk to use the consolidated-expenses option for this business in relevant MTD income tax forms. Leave it off to use the individual expense categories instead.
Choose the option that reflects how you prepare the business's figures. If you are unsure which expense approach is appropriate, check your records and take advice from HMRC or a qualified tax professional.
Trading or property income allowance
The allowance option depends on the business type:
| Business type | Option shown |
|---|---|
| Self Employment | Use Trading Allowance |
| UK Property | Use Property Income Allowance |
| Foreign Property | Use Property Income Allowance |
Turn the option on only if you intend to use the corresponding allowance for the business. The option controls how AccountsDesk handles the relevant allowance in supported MTD forms; it does not confirm that you are eligible to claim it. Check the current HMRC rules or speak to a qualified tax professional if you are uncertain.
Changes to expense and allowance options are saved when you change the checkbox. AccountsDesk shows an update message while the change is being saved and confirms success or displays an error.
Accounting Configuration
Use Accounting Type to choose the accounting basis for the business:
| Option | Meaning |
|---|---|
| CASH | Record income when you receive it and expenses when you pay them. |
| ACCRUAL | Record income when it is earned and expenses when they are incurred, even if payment happens later. |
Choose the basis you use for the business's records. Changing the accounting type updates the business setting with HMRC. The control is temporarily disabled while the change is being processed, and AccountsDesk displays whether it succeeded.
The accounting type is shown when it is available for the selected business. If you do not see this section, check that you have selected the correct business.
Quarterly Type Choice
Quarterly Period Type determines whether the business uses calendar or standard quarterly periods for MTD ITSA reporting:
- Calendar uses quarters aligned to calendar months.
- Standard uses the standard quarterly periods for the tax year.
The choice affects the quarterly periods HMRC expects for that business. Select the option that matches the reporting periods you intend to use, and check the obligations shown in AccountsDesk after changing it. The selected choice is updated with HMRC; wait for the confirmation before navigating away.
If a Tax Year of Choice is displayed, it is shown as business information on this page. The quarterly period type can be changed using its drop-down; the tax year value is displayed separately.
For deadlines and how to review or send quarterly updates, see Manage Quarterly and Annual Income Tax Submissions and Quarterly Update Deadlines.
Accounting Periods for Self Employment
The Accounting Periods section is available for Self Employment businesses only. It relates to periods of account that ended in the current tax year and is separate from the quarterly reporting-period choice.
- Answer Yes or No to whether the business had a period of account that ended in the displayed tax year.
- If you select Yes, add each period using Add New Period. Enter its start and end dates. Use Edit or Delete in the table to correct the list.
- Select Update to submit your answer and period dates to HMRC.
At least one period must be listed when you answer Yes. If you answer No, no period dates are sent. Changes made to the list are not submitted until you select Update. AccountsDesk displays a success or error message after the submission.
The page loads the accounting-period information for the tax year shown. Review the dates carefully before submitting them.
Frequently asked questions
Do I need to update Tax Settings for every business?
Settings apply to the selected business. If you have multiple self-employment or property businesses, select each business in turn and review its settings.
Why is the Trading Allowance option not shown?
The allowance label depends on the business type. Self-employment businesses show Use Trading Allowance; UK and foreign property businesses show Use Property Income Allowance.
Why can’t I see Accounting Periods?
Accounting Periods is shown for self-employment businesses only. Make sure the selected business is a self-employment income source.
Do accounting periods and quarterly periods mean the same thing?
No. Quarterly Period Type sets the quarterly reporting pattern. Accounting Periods records periods of account that ended in the selected tax year, and is only shown for self-employment.
When are my changes sent?
Expense and allowance checkboxes and the accounting and quarterly type choices save when changed. For Accounting Periods, edit the answer and date list, then select Update to send them to HMRC.
What should I do if an update fails?
Read the message shown by AccountsDesk, check the selected business and the values you entered, then retry. If HMRC continues to reject the update, check the HMRC service or contact your tax adviser.