- MTD for Corporation Tax has been scrapped, and HMRC confirmed in its July 2025 Transformation Roadmap that it does not intend to introduce it.
- Limited companies carry on filing their annual CT600 Corporation Tax return as normal, with no quarterly updates or mandatory digital record-keeping.
- MTD still applies to VAT, and to Income Tax Self Assessment for directors with sole trader or rental income over the relevant thresholds.
MTD for Corporation Tax is not happening, and as of 2026 there is no plan to bring it in. HMRC confirmed in its July 2025 Transformation Roadmap that it does not intend to mandate Making Tax Digital for Corporation Tax, so your limited company carries on filing its annual return exactly as before.
That means no quarterly updates and no mandatory digital record-keeping for Corporation Tax. If you want a single partner to keep every filing that does still apply on track, our accounting services cover Corporation Tax, VAT, and more.
This guide explains what the scheme was meant to be, why it was dropped, and what to focus on instead.
Is MTD for Corporation Tax happening?
MTD for Corporation Tax is not happening, and there is currently no timeline for it.
HMRC’s July 2025 Transformation Roadmap stated that it will not introduce Making Tax Digital for Corporation Tax. The language was definitive rather than a delay or postponement, and that position remains unchanged in 2026.
Instead, HMRC said it will modernise its own internal Corporation Tax systems first and develop a separate approach suited to the wide range of companies in the CT system, from small owner-managed businesses to large groups.
What was MTD for Corporation Tax meant to be?
MTD for Corporation Tax was intended to be the next phase of Making Tax Digital, extending digital rules to limited companies.
Had it gone ahead, companies would have been required to:
- Keep digital financial records.
- Submit quarterly updates to HMRC through approved software.
- File a digital year-end declaration to finalise the tax position.
It was originally pencilled in for no earlier than April 2026, but that plan has now been formally dropped.
Why did HMRC scrap MTD for Corporation Tax?
HMRC scrapped MTD for Corporation Tax because the original one-size-fits-all model did not suit the sheer variety of UK companies.
In its roadmap, HMRC said it would renew its internal Corporation Tax systems before considering any future changes, and that it would design an approach tailored to the diverse CT population. In plain terms, companies can keep filing their annual Corporation Tax return as usual, with no change to their reporting method.
This removes a compliance burden that many small companies had been preparing for since the scheme was first announced.
What does this mean for your limited company?
Your limited company faces no new digital obligations for Corporation Tax as a result of this decision.
You continue to file your CT600 once a year and pay any Corporation Tax due on the normal deadline. If you already use accounting software, nothing about that needs to change for Corporation Tax purposes.
The wider direction of travel is still digital, though, so good digital records remain a sensible habit even where they are not mandatory.
Even with no mandate, keeping your bookkeeping in software year-round makes your annual Corporation Tax return faster, cheaper to prepare, and far less stressful than reconstructing figures after year-end.
Which parts of Making Tax Digital still apply?
Making Tax Digital still applies to VAT and is being extended to Income Tax Self Assessment, even though Corporation Tax is out of scope.
If your company is VAT-registered, Making Tax Digital for VAT still requires you to keep digital records and submit returns through compatible software. Manual submissions through the old portal are no longer allowed.
Directors with personal sole trader or rental income should also watch MTD for Income Tax, which begins rolling out from April 2026 for qualifying income over £50,000.
What should UK companies do instead?
The most useful thing UK companies can do now is tidy up the digital obligations that genuinely apply, rather than prepare for one that does not.
- Confirm your VAT position and check your software is MTD for VAT compliant.
- If you are a director with side income, check whether MTD for Income Tax will catch you personally.
- Keep your company bookkeeping digital and up to date throughout the year.
- Diarise your Corporation Tax filing and payment deadlines so nothing slips.
- Review whether your current setup would cope easily if digital CT rules ever returned.
A short conversation with an accountant can confirm exactly which rules apply to your company and which do not.
How Sleek helps with MTD for Corporation Tax
MTD for Corporation Tax may be off the table, but staying on top of the taxes that do apply still takes time and accuracy.
Sleek keeps your Corporation Tax, VAT, and year-end accounts aligned and filed on time, with a cloud-first platform that keeps your records digital whether HMRC mandates it or not. For directors with personal income to report, we keep that joined up too.
Disclaimer: The preceding information is not legal advice. This content is aimed to provide general guidance. For more formal or legal advice, contact Sleek directly.
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FAQs on MTD for Corporation Tax
Is MTD for Corporation Tax still happening?
No. HMRC confirmed in its July 2025 Transformation Roadmap that it does not intend to introduce Making Tax Digital for Corporation Tax. This was stated as a decision rather than a delay. As of 2026 the position is unchanged, so limited companies have no quarterly reporting or mandatory digital record-keeping obligations for Corporation Tax.
Will MTD for Corporation Tax come back in the future?
Possibly, but there is no timeline. HMRC has said it will first modernise its internal Corporation Tax systems and then design an approach suited to the diverse range of UK companies. That could eventually mean new digital requirements, but nothing is currently planned, and you should treat the cancellation as the live position for now.
Do I still need software for my Corporation Tax?
Not legally, but it helps. There is no requirement to use software for Corporation Tax, but keeping digital records improves accuracy and speeds up your annual return. It also means you would adapt easily if HMRC ever introduced digital rules for Corporation Tax later on.
How do I file my Corporation Tax return now?
The process has not changed. Most companies file their CT600 return online through HMRC’s Corporation Tax service once a year, and pay any tax due by the deadline. The scrapping of MTD for Corporation Tax does not affect this, so you continue exactly as you did before the announcement.
Does this decision affect MTD for VAT?
No. MTD for VAT remains fully in force. If your company is VAT-registered, you must keep digital records and file VAT returns through compatible software. The cancellation of MTD for Corporation Tax has no bearing on your VAT obligations, which continue under their existing rules.
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Could MTD for Income Tax affect me as a director?
Yes, in a personal capacity. MTD for Income Tax does not apply to your company, but if you have sole trader or rental income above the qualifying thresholds, it can apply to you personally. The first phase begins in April 2026 for qualifying income over £50,000.
Why was MTD for Corporation Tax scrapped when other parts continue?
Because Corporation Tax covers a hugely varied population. HMRC concluded that a single digital model could not fairly serve everything from one-person companies to multinational groups. Rather than force a blanket system, it chose to modernise its own systems first and design a more tailored approach later, while VAT and Income Tax rollouts continue.
