HM Revenue & Customs scrap Making Tax Digital for Corporation Tax

HMRC update

HM Revenue & Customs (HMRC) have announced in their recent Transformation Roadmap that Making Tax Digital (MTD) for Corporation Tax will not be introduced, as previously intended.

Previous plans

In 2020, HMRC published their 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 be required to keep digital records and submit the returns online via a HMRC approved software.

No ‘one size fits all’ for corporation tax

However, HMRC have recognised there is no ‘one size fits all’ solution and due to the complexities of Corporation Tax, it would be difficult to bring in MTD. Instead, they will work on approach that suits the varying needs of a diverse range of Limited companies.

Making Tax Digital for income tax and self-assessment unaffected

Please note, this 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 local Perrys branch.

We also have a page especially for MTD, including information, FAQ’s and more.