HMRC scraps Making Tax Digital for corporation tax

HMRC has announced in the recent transformation roadmap that Making Tax Digital (MTD) for corporation tax will not be introduced, as previously intended.

Previous plans

In 2020 HMRC published plans for the launch of MTD for corporation tax with the aim of bringing the tax system closer to ‘real time’ whereby limited companies would be required to make quarterly submissions of transactions. This would have been in addition to the annual corporation tax return. If this had gone ahead, limited companies would have been required to keep digital records and submit the returns online via an HMRC approved software.

No ‘one size fits all’ for corporation tax

However, HMRC has said that there is no one size fits all solution and because of the complexities of the corporation tax regime, it would be difficult to bring in MTD. Instead HMRC has said that it will work on an approach that suits the varying needs of a diverse range of limited companies.

Making Tax Digital for income tax and self assessment unaffected

This announcement does not affect the introduction of MTD for income tax and self assessment from 6 April 2026. If you need any assistance with this then please contact your Swindells Partner