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Making Tax Digital for Corporation Tax

HM Revenue & Customs have published a consultation on the implementation of MTD for Corporation Tax. Below is a summary which taxes will be updated as the consultation is refined.

Who needs to comply with MTD for Corporation Tax (MTD for CT)?

All entities within the charge to CT will need to comply with the rules. There are some modifications to the rules for very large companies.

What is the timetable for MTD for CT?

At present, the new reporting is scheduled to commence from April 2026, with voluntary pilots commencing in 2024.

What are the requirements?

There is no planned change to the quarterly payment regimes

Similar to MTD for VAT, companies will be required to maintain their records digitally in as close as real time as possible, using compatible software.

Quarterly reporting to HM Revenue & Customs will be required and the proposed deadline is one month after each quarter end. Accounting and tax adjustments are not mandatory but may be preferred if they are significant in size to assist with cashflow planning. The proposals include an exemption for very large companies from quarterly reporting.

There is no planned change to the quarterly payment regimes, with the majority of companies still having a payment deadline of 9 months and 1 day after the year end.

It is proposed that the CT reporting for the year is finalised with 9 months from the year end (shortened from the tax return deadline of 12 months).  There would be no annual tax return filing.  Your tax agents will use MTD compatible software to make any adjustments and claim reliefs.

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Would you like to know more?

If you would like more information on Making Tax Digital for Corporation Tax or advice on how to make sure you remain compliant, please get in touch with your usual Blick Rothenberg contact or one of our experts using the details on this page.

Visit our Making Tax Digital hub for more information.