HMRC has confirmed that companies will not have to comply with the requirements of Making Tax Digital (MTD) for corporation tax (CT) purposes.
No start date had been set for MTD for CT, under which companies would have been required to maintain digital records; send quarterly updates to HMRC; and submit an annual corporation tax return via MTD-compatible software. According to HMRC’s latest transformation roadmap the plans to bring companies into the scope of MTD have now been officially abandoned.
Instead, a range of new digital services will be introduced during 2025-26 and HMRC is ‘developing an approach to the future administration of CT that is suited to the varying needs of the diverse CT population’.
Although offering a temporary reprieve for companies, HMRC remains committed to digitalisation across the tax system. It is still a good idea to keep digital records where possible to improve efficiency and ensure that your company is prepared for future compliance needs.
This does not affect MTD for income tax, which is still due to go ahead from April 2026 for self-employed individuals and landlords with qualifying income above £50,000.
Companies that are required to comply with the digital requirements of MTD for VAT will still be expected do so.
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