A quarterly update is a summary of the income and expenses recorded for your self-employment business during the tax year.
It is not a complete CIS tax return and it does not settle your final tax position.
MTD 4 Subbies uses the digital records you have kept to prepare the figures for HMRC.
1. Update your digital records
Make sure you have recorded all business transactions for the period.
Check that you have included:
● gross payments from contractors
● income from other self-employment work
● business expenses
● payments made in cash
● transactions from any business bank account you use
You should also make sure the records are categorised correctly.
2. Check gross and net payments
Compare the payments in your records with your CIS deduction statements.
For each payment, make sure you have recorded:
● the full gross income
● the net payment received
● the CIS tax deducted
Only the gross income and relevant business expenses feed into the quarterly update.
The CIS deduction remains separate.
3. Review your expenses
Check that all allowable business costs have been recorded.
You do not normally need to make final tax or accounting adjustments before sending a quarterly update. The update is based on the records kept during the year.
Any necessary year-end adjustments are dealt with when you complete your annual tax return.
4. Review the quarterly figures
MTD 4 Subbies software should show the income and expense totals that will be submitted.
Check that:
● all contractors’ payments are included
● gross income has been used
● CIS deductions have not been treated as expenses
● personal spending has not been included
● transactions have not been duplicated
5. Submit the update to HMRC
Once you are satisfied that the figures are complete, send the update through MTD 4 Subbies app.
We're building a simpler way for UK CIS subcontractors to track income, expenses and stay ready for Making Tax Digital.
Register your interest today and we'll let you know as soon as launch dates and early access become available.
