Need help staying compliant with digital tax rules?
Heard about Making Tax Digital for Corporation Tax and wondering if your business needs to act? As of mid-2025, the answer is: not anymore.
HMRC has officially dropped its plans to extend Making Tax Digital (MTD) to Corporation Tax. That means no mandatory digital record-keeping or quarterly reporting for companies—at least, not any time soon.
That doesn’t mean you get off scot-free though, and it’s important to learn what’s changed, why it matters, and what to focus on instead.
Stay compliant with HMRC's new Making Tax Digital rules
What was MTD for Corporation Tax supposed to be?
Making Tax Digital is the government’s long-term plan to modernise tax admin using software. If your company is VAT-registered, then you’ll already be a part of it.
MTD for Corporation Tax was meant to be the next phase, requiring limited companies to:
- Keep digital financial records
- Submit quarterly updates updates to HMRC via approved software
- Finalise tax positions with a digital End of Period Statement
It was set for no earlier than April 2026. But that’s changed. Though, this is only for Corporation Tax. The bulk of the plan is still going ahead!
Why has HMRC scrapped MTD for Corporation Tax?
As of July 2025, HMRC confirmed it had no plans to mandate MTD for Corporation Tax. Instead, it’s shifting focus to improving internal systems and supporting better digital compliance through the existing channels.
In plain English? Companies can carry on filing annual Corporation Tax returns as usual, without changing their reporting method or systems.
MTD for VAT and Self Assessment: still happening
It’s worth noting that Making Tax Digital for VAT is very much in place. If you’re VAT-registered, you still need to:
- Use compatible software
- Submit digital returns
- Maintain digital links between systems
MTD for Income Tax Self Assessment (ITSA) is also on the way—for sole traders and landlords earning over £50,000, starting April 2026.
What might come next for MTD for Corporation Tax?
While there’s no timeline or roadmap for bringing MTD to Corporation Tax, it could return in the future. For now though, HMRC seems a bit more focused on nudging businesses towards it voluntarily.
So while the mandatory changes are off the table, digital transformation is still the set direction. Our advice would be to catch the wind in your sails now before it changes direction.
How Sleek can help with Making Tax Digital (and lots more!)
Even with MTD for Corporation Tax off the cards, managing your taxes digitally is still a smart move. Whether you’re handling VAT, Self Assessment, or your year-end accounts, Sleek’s expert support and cloud-first platform make compliance simple.
- Online accounting tools for smarter bookkeeping
- Specialist support with Corporation Tax and MTD
- Peace of mind knowing you’re set up properly
We’ve helped thousands of business owners all around the world modernise their financial admin.
So give us a call and let’s get you sorted.
Get expert support for Making Tax Digital, Corporation Tax, & much more.
FAQs about Making Tax Digital for Corporation Tax
Is MTD for Corporation Tax still happening?
No. HMRC confirmed in July 2025 that it has scrapped plans to mandate MTD for Corporation Tax.
Do I still need digital software for Corporation Tax?
It’s not legally required, but it’s recommended. Digital records improve accuracy and reduce admin—plus, you’ll be better prepared if rules change later.
Is MTD still required for VAT?
Yes. If your business is VAT-registered, you must follow MTD rules, including using compatible software and submitting digital returns.
What about MTD for Self Assessment?
Making Tax Digital for Income Tax Self Assessment (MTD ITSA) starts from April 2026 for sole traders and landlords earning over £50,000.
Should I still prepare for digital tax processes?
Definitely. While Corporation Tax isn’t affected, going digital helps streamline tax filing and keeps you compliant with other HMRC requirements.
Can my accountant do this for me?
Yes. Accountants can manage your MTD submissions and software setup. If you work with one, it’s worth checking they’re MTD-ready. (Like Sleek!)
