Sending MTD updates and your final declaration

Under Making Tax Digital you send HMRC an update for each quarter, then a Final Declaration once the tax year is over. KinderStart fills in the figures from your invoices and expenses. You check them and send them.

1. Open a quarter

Open the Finance tab, tap HMRC MTD, then choose a period under Your Obligations. The Quarterly Update screen opens.

2. Check the figures

KinderStart fills in three boxes from the invoices, expenses and income you've recorded for that period:

• Turnover (£)
• Other Income (£)
• Consolidated Expenses (£)

The Calculation Breakdown above them shows where each figure came from.

Tap View full audit trail to open the Audit Trail. The HMRC Submission Preview shows what will be sent. Excluded (not sent to HMRC) lists what was left out, such as LA funding.

3. Work out your household costs (optional)

If you childmind from home, tap Calculate household apportionment. On Household Apportionment:

1. Under Working Pattern, enter your rooms and weekly childminding hours.
2. Under Annual Household Bills, enter your yearly bills.
3. Check HMRC Simplified vs Actual to compare the two ways of claiming.
4. Tap Use this figure to add the amount for this period to your expenses.

The screen reminds you: "Estimates only. Consult a qualified tax adviser before filing."

4. Send the update

Tap Submit Quarterly Update.

To correct a quarter you've already sent, tap Amend next to it under Your Obligations. Change the figures and tap Save Amendment.

5. Check your tax so far (optional)

In the MTD Toolbox, tap Tax Estimate, then Get Tax Estimate. HMRC works out your tax based on what you've sent so far. The screen says: "This calculation is an estimate only and may not reflect your final tax liability." Past results are kept under Calc History.

6. Make your Final Declaration

When all your quarterly updates for the year are in, go to Tax Year Finalisation and tap Final Declaration.

1. Tap Generate Tax Calculation. HMRC works out your final position. If it's still working, tap it again after a moment.
2. Check Total Income Tax & NICs Due and the breakdown.
3. Read the declaration and tick the box. It says: "I declare that the information and tax return I have submitted are (taken together) correct and complete to the best of my knowledge. I understand that I may have to pay financial penalties and face prosecution if I give false information."
4. Tap Submit Final Declaration. You can't tap it until you tick the box.

You'll see Declaration Complete.

If you find a mistake afterwards, tap Amend Previous Return under Tax Year Finalisation. You go through the same steps, ending with Submit Amendment.

What to do next

• Logging expenses and mileage: record the costs your updates include.
• Your year and your tax estimate: see your income and expenses across the year.