Home / Glossary / Quarterly update categories
What is Quarterly update categories?
Last verified 31 October 2026
Quarterly update categories are the headings under which your software totals your property income and expenses before sending a quarterly update. HMRC says Making Tax Digital for Income Tax uses the same income and expense categories as Self Assessment.
Why it matters to landlords
Your software adds up your digital records every three months and sends a total for each category, not individual transactions. HMRC does not receive receipts or invoices. For UK property, the records guidance lists income such as rent, premiums for the grant of a lease, and reverse premiums and inducements, with expense categories that include the costs of repairs, maintenance or other services.
Because the categories match Self Assessment, a transaction put in the right category during the year needs no re-sorting when you complete your return. Landlords with total UK property turnover below £90,000 can use simpler categorisation, but residential landlords must still record whether an expense is a restricted finance cost. All UK properties together form one UK property business, so you send one set of category totals, not one per property.
Example
Dev has two lets. In the update for 6 April to 5 July 2026 his software reports rent received of £6,300, repairs and maintenance of £840 and insurance of £210, each as a single total across both properties. The mortgage interest on one flat is recorded as a restricted finance cost.