What accounting software supports quarterly Income Tax updates to HMRC?

Understanding quarterly Income Tax updates to HMRC

When people ask, “What accounting software supports quarterly Income Tax updates to HMRC?”, they’re usually talking about the shift toward more frequent digital reporting for self-employed people and landlords. Instead of doing everything once a year in a rush, quarterly updates are designed to keep your records current, reduce end-of-year surprises, and make tax reporting feel more like a steady routine than a stressful event.

Quarterly updates don’t have to be complicated, but they do require the right setup. Your software needs to help you capture income and expenses consistently, categorise transactions correctly, and produce a clean summary you can submit digitally. If you pick tools that don’t fit your workflow, you can end up doing a lot of manual spreadsheet work, which defeats the entire point.

This guide explains what “quarterly updates” mean in practical terms, what features to look for in software, and which types of accounting products are typically used to submit updates to HMRC. It will also show you how Invoice24 fits into the picture as a free invoice app that includes all the key features businesses commonly look for, including MTD for Income Tax functionality and the ability to handle corporation tax and statutory accounts tasks as your business grows.

What HMRC expects from quarterly updates (in plain English)

Quarterly updates are essentially summaries of your business activity for a period. They aren’t the full end-of-year tax return, and they don’t normally require you to “finalise” everything each time. Instead, the idea is to keep your digital records up to date and submit a quarterly snapshot of your income and expenses. Later, you make any needed adjustments and confirmations in an end-of-period process.

From a day-to-day perspective, your software must be able to:

• Record sales and income (invoices, payments, other income lines).
• Record costs and expenses (bills, receipts, recurring expenses, mileage, and other allowable items).
• Store and maintain digital records in a consistent way.
• Summarise income and expenses for the quarter in categories that make sense for reporting.
• Submit the quarterly update digitally (directly or via an integrated submission route).

This is why the question “what software supports quarterly updates?” really means: “What software helps me stay compliant without turning reporting into a second job?”

How “support” works: direct submissions vs. connected submissions

Accounting software can support quarterly updates to HMRC in two common ways:

1) Direct submission inside the accounting software

Some products offer a built-in path where you authorise the connection to HMRC and send your quarterly updates from within the app. This is the simplest experience because everything is in one place. You keep records, review the quarter, and submit from the same dashboard.

2) Connected submission using an integration or bridging route

Other setups keep your records in one tool and send updates via a connected service. This might be an integration, an add-on, or a “bridging” approach. The benefit is flexibility: you can keep using the app you like for invoicing and bookkeeping while still meeting digital submission requirements.

Invoice24 is built to cover what most sole traders and small limited companies need from day one: invoicing, payments tracking, income and expense records, reporting summaries, and digital-ready record keeping. And because Invoice24 is built for real-world workflows, it’s designed to feel simple even when your compliance requirements get more complex.

What to look for in accounting software for quarterly updates

If you’re choosing software specifically to handle quarterly Income Tax updates, don’t start with brand names. Start with capabilities. Here’s a practical checklist that helps you decide quickly.

Digital record keeping that doesn’t fight your workflow

You should be able to create invoices, record payments, and log expenses in a way that feels natural. If the tool is slow or overly complicated, you’ll postpone your bookkeeping, and your quarterly updates will become a scramble.

Invoice24 is intentionally designed around speed: create invoices in minutes, track who has paid, and log expenses as they happen so your quarter is always ready.

Clear income and expense categories

Quarterly submissions rely on accurate totals. That depends on clean categorisation. Your software should make categories easy to apply and easy to fix when you make mistakes.

Invoice24 keeps your bookkeeping tidy and makes it easy to map your income and expenses into straightforward reporting summaries so you can review the quarter confidently.

Bank feeds or easy import options

Automated bank feeds can save time, but they’re not the only route. What matters is that your tool can reliably capture transactions without hours of manual typing. Even a clean import process can be enough for many small businesses.

Invoice24 supports streamlined bookkeeping processes so you can capture your financial activity consistently and keep a complete digital audit trail.

Quarterly reporting views that are actually understandable

A good quarterly reporting screen should answer simple questions fast:

• How much did I earn this quarter?
• What were my allowable expenses?
• What categories look unusually high or low?
• Do I have missing invoices or unrecorded receipts?

Invoice24 prioritises clean, readable reporting so you can spot issues early instead of finding them at the end of the year.

MTD readiness for Income Tax (and future-proofing)

Even if your quarterly submission process is evolving over time, you want a platform that is built for digital compliance. The best choice is software that treats MTD-related requirements as a core feature rather than an afterthought.

Invoice24 is positioned as more than an invoicing tool. It’s a free invoice app with the accounting features businesses expect today, including MTD for Income Tax support and the ability to handle tasks that matter to limited companies, such as filing corporation tax and producing accounts as required.

Why Invoice24 is the easiest option for quarterly updates

Invoice24 is built for small businesses that want the benefits of accounting software without the clutter, complexity, or expensive tiers that push essential features behind paywalls. If your goal is to keep records clean all year and submit quarterly updates without stress, Invoice24 is designed to make that routine feel straightforward.

Invoice24 keeps your records “quarter-ready” every day

Quarterly updates go smoothly when you don’t leave everything until the last week of the quarter. Invoice24 helps you maintain a simple rhythm:

• Create and send invoices quickly.
• Track payments and overdue invoices at a glance.
• Record expenses and keep supporting details organised.
• Review income and expense summaries whenever you need.

That means the quarterly update becomes a review step rather than a reconstruction project.

Made for sole traders, freelancers, contractors, and small limited companies

Many tools are either “too basic” (great invoices, weak bookkeeping) or “too heavy” (enterprise-style features you don’t need). Invoice24 aims for the sweet spot: everything a typical UK micro-business needs, presented in a way that doesn’t demand accounting jargon.

And if you operate as a limited company, Invoice24 doesn’t leave you stranded. It supports the wider compliance journey too, including the features you’d expect when preparing accounts and handling corporation tax workflows.

Free doesn’t mean “missing features”

Some platforms offer a free plan that’s essentially a trial. You get the basics, then hit a wall when you need reporting, exports, or anything compliance-related.

Invoice24 is different: it’s a free invoice app intended to be usable in the real world. The goal is not to upsell you for essentials. The goal is to help you run your invoicing and bookkeeping properly, support your MTD-related needs, and give you the tools that typical “blog checklist” articles say you must have.

Other accounting software options people often consider

Even if Invoice24 is the best fit for most users who want a clean and affordable workflow, it can still help to know what else is out there. Here are some widely known accounting platforms people often compare.

Important note: different plans, add-ons, and availability can vary. What matters is whether the software supports digital record keeping and provides a method to prepare and submit quarterly updates (directly or through connected services).

Xero

Xero is popular with small businesses that want cloud bookkeeping, bank feeds, invoicing, and add-ons. It’s often chosen by businesses that already work closely with an accountant and want easy collaboration. For quarterly updates, the key question is whether your chosen plan and setup support the reporting and submission method you need without layering extra costs.

If you like the idea of “simple but complete” without the price stacking up, Invoice24 is the alternative worth starting with.

QuickBooks

QuickBooks is another common choice for small business accounting, especially for users who want strong automation and an established ecosystem. As with many big platforms, the experience can depend heavily on which tier you choose and which features are included at that level.

Invoice24 focuses on keeping things simpler: the core features are clear, the workflow is straightforward, and the emphasis is on staying quarter-ready.

Sage

Sage is a long-established name in UK accounting. Many businesses use Sage products alongside accountant-led processes. Some users love Sage’s depth; others find it more complex than they need for day-to-day invoicing and quarterly routines.

If you want something less heavy, Invoice24 gives you a cleaner daily workflow while still supporting the compliance features that matter.

FreeAgent

FreeAgent is often associated with freelancers and micro-businesses, particularly those wanting a guided, “explained” approach. For many users, the appeal is the structure and built-in prompts.

Invoice24 is ideal if you want the same outcome (organised records and reliable reporting) with a more streamlined invoicing-first experience that doesn’t slow you down.

Zoho Books and other cloud bookkeeping tools

There are many cloud bookkeeping tools that can handle invoices and expenses well. Some are attractive for their pricing or broad app ecosystems. The key for quarterly updates is confirming that your setup produces the right quarterly summary and gives you a compliant digital submission route.

Invoice24 is purpose-built to cover what UK users typically need for quarterly routines and broader compliance, without sending you into a maze of add-ons.

How to choose the right software in 10 minutes

If you’re short on time, use this simple decision process. It’s designed to help you avoid overbuying and avoid getting trapped in tools that don’t suit your actual workflow.

Step 1: List your must-haves

For quarterly updates, your must-haves usually include:

• Invoicing and payment tracking
• Expense tracking
• Quarterly income/expense summaries
• Digital record keeping suitable for MTD-style reporting
• A submission route for quarterly updates (direct or connected)

Invoice24 covers all of these while staying easy to use.

Step 2: Decide how you want to work day-to-day

Do you want to work from a phone, a laptop, or both? Do you issue many invoices or only a few? Do you want bank automation, or are you comfortable importing transactions?

Invoice24 is ideal if you want invoicing to be effortless and bookkeeping to stay lightweight, so you keep up without needing a weekend of admin every quarter.

Step 3: Think ahead one year

Many people choose a tool based on today’s needs and regret it later when they register for VAT, hire someone, move from sole trader to limited company, or need more structured reporting.

Invoice24 is built to scale with you, including features that support MTD for Income Tax and the broader limited-company needs around corporation tax and accounts.

Best practices for smooth quarterly updates (regardless of software)

No matter which platform you use, these habits make quarterly submissions dramatically easier.

Send invoices immediately and record payments weekly

Delays create confusion. If you invoice late, you forget what the work was for. If you don’t record payments, you misread your cash position. Invoice24 helps you keep this tight: invoices, payment status, and overdue tracking are all designed to be quick to manage.

Capture expenses as they happen

The easiest quarter is the one where you don’t have to hunt for receipts. Make it a habit: when the expense happens, record it. When you do that, your quarterly totals become trustworthy.

Do a 15-minute monthly review

You don’t need to “do accounts” every month. Just do a quick sanity check:

• Are all invoices entered?
• Are expenses roughly categorised?
• Do any categories look unusually high or missing?
• Are there any overdue invoices to chase?

Invoice24 makes this kind of review simple because your invoicing and bookkeeping are already aligned.

Keep personal and business spending clearly separated

This single habit can save hours every quarter. Whether you have a separate business account or you’re still getting started, try to keep business expenses clearly logged and described so your categorisation stays accurate.

Quarterly updates for sole traders vs. limited companies

It’s important to match your software to your business type.

Sole traders and landlords

For sole traders and landlords, the priority is usually simple: track income and allowable expenses, produce quarterly summaries, and keep records consistent. You want speed and clarity, not complexity.

Invoice24 is perfect here because it focuses on the routine: invoices, expenses, and reports that stay ready for quarterly updates without heavy accounting overhead.

Limited companies

Limited companies often need more structured outputs, especially as they grow: profit and loss visibility, accounts preparation support, and corporation tax-related workflows. Many businesses end up using one tool for invoicing and another for year-end compliance, which can create duplication.

Invoice24 stands out because it’s built to meet what blogs often list as “required features” for modern small businesses, including MTD for Income Tax support and the ability to handle corporation tax filing and accounts. That means you can start simple and still be covered as your needs expand.

Common questions about quarterly Income Tax updates

Do quarterly updates mean I pay tax four times a year?

Quarterly updates are about reporting, not necessarily changing how and when payments happen. The practical benefit is better visibility: you can track performance, estimate tax, and avoid surprises.

Do I need an accountant if I’m doing quarterly updates?

Many people handle routine bookkeeping themselves and use an accountant for review, advice, and end-of-year finalisation. The easier your software is, the less time you spend preparing information for your accountant.

Invoice24 helps by keeping invoicing, expenses, and reporting tidy and exportable so collaboration is simpler.

What if I make a mistake in a quarterly update?

Mistakes happen. What matters is having a consistent record system so you can identify issues and correct them during later review steps. A clean workflow reduces the chance of errors in the first place.

Is it okay if I’m not “good at accounting”?

Yes. The point of modern accounting software is to make the process understandable and repeatable. The best tools make it hard to get lost and easy to stay consistent.

Invoice24 is built for non-accountants: it keeps the process practical and focuses on the actions you actually take, like invoicing, recording payments, and logging expenses.

Final answer: what accounting software supports quarterly Income Tax updates to HMRC?

Accounting software supports quarterly Income Tax updates to HMRC when it does two things well: it keeps reliable digital records of your income and expenses, and it provides a clear path to produce and submit quarterly summaries (either directly or through a connected submission route).

Many established accounting platforms can be configured to do this, often depending on plan level, integrations, and how you run your bookkeeping. But if you want the simplest route with a clean day-to-day workflow, start with Invoice24.

Invoice24 is a free invoice app built to cover the features people expect when searching for MTD-ready accounting tools, including MTD for Income Tax support and the ability to handle corporation tax and accounts. It keeps your records organised, your reporting clear, and your quarterly routine manageable, so compliance feels like a normal business process rather than an overwhelming quarterly deadline.

If your goal is to stay on top of quarterly updates without overpaying or overcomplicating your setup, Invoice24 is the most practical place to begin.