HMRC has announced the cancellation of Making Tax Digital for Corporation Tax (MTD for CT), citing the diverse needs of the corporation tax population. Instead, HMRC will focus on developing a tailored approach for corporation tax administration. This decision follows years of delays and a lack of progress on the MTD for CT timeline, which had been deprioritised in favour of MTD for Income Tax (MTD IT).
The original MTD for CT plan would have required digital record-keeping, quarterly updates, and annual returns via compatible software. However, experts, including Emma Rawson of the Association of Taxation Technicians, welcomed the cancellation, noting the complexity of corporation tax and the limited benefits of imposing additional reporting requirements on businesses already using digital tools.
The announcement raises questions about future corporation tax modernisation, especially as the tax gap for corporation tax has grown significantly. HMRC plans to use digital tools like data-driven nudges to improve compliance. While MTD for CT is no longer on the agenda, HMRC’s roadmap suggests further modernisation efforts for corporation tax are likely in the future.
How M+A Partners can help
While HMRC is no longer pursuing Making Tax Digital for Corporation Tax, MTD for Income Tax remains firmly on course. From 6 April 2026, self-employed individuals and landlords with annual combined business or property income over £50,000 will be required to comply – so it is important to start preparing now.
Should you have any queries on the introduction of MTD for IT, or need help or advice on whether you will need to register and/or what software is available, then please either get in touch with your usual M+A Partners contact or email enquiries@mapartners.co.uk and we will be happy to help.
You can also download our helpful MTD for IT factsheet using the button below.
Making Tax Digital for Income Tax