MTD ITSA business settings: cash or accruals, standard or calendar quarters

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.

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.

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

This sets the dates your four quarterly updates run to:

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.

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.

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.

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