Last updated: 14 October 2026
Is there Making Tax Digital for corporation tax?
Not at present. Making Tax Digital (MTD) currently applies to VAT, for all VAT-registered businesses, and to Income Tax Self Assessment, for sole traders and landlords with qualifying income over £50,000 from April 2026. HMRC confirmed in its July 2025 Transformation Roadmap that it will not introduce MTD for corporation tax. Limited companies still file their CT600 returns with computed accounts in iXBRL format, as they do now.
Where MTD applies in 2026/27
| Tax | MTD status |
| VAT | Mandatory for every VAT-registered business |
| Income Tax (sole traders and landlords) | Mandatory from 6 April 2026 above £50,000, from April 2027 above £30,000 and from April 2028 above £20,000 |
| Corporation tax | No MTD (HMRC confirmed it will not be introduced); CT600 filed with commercial software |
MTD for VAT in a limited company
A VAT-registered company must:
- keep digital records of sales and purchases in compatible software
- keep “digital links” between spreadsheets and software, with no copying and pasting
- file VAT returns through MTD-compatible software
- keep records for 6 years
What companies file for corporation tax
- Statutory accounts at Companies House within 9 months of the year-end
2. The CT600 return, with tax computations and iXBRL-tagged accounts, within 12 months
3. Payment of corporation tax within 9 months and 1 day (or quarterly instalments for large companies)
Companies House changes
From 1 April 2028, Companies House will require all companies to file accounts in iXBRL format using commercial software, and its web and paper accounts services will close. Abridged accounts will also end then, and small and micro companies will have to file a profit and loss account, although they can opt out of publishing it. This was originally planned for April 2027 but was put back.
Why go digital anyway
Even without MTD for corporation tax, cloud bookkeeping in Xero or QuickBooks helps you keep VAT compliant, get faster year-ends and see your tax position in real time. See what is Xero.
Directors and MTD for Income Tax
Company directors aren’t brought into MTD for Income Tax by their salary or dividends. But if you also have rental or self-employed income over the threshold, you will need it.
What directors should do now
- Keep VAT records in MTD-compatible software, if the company is VAT-registered
- Check that your accounts software can produce iXBRL accounts ready for the 2028 Companies House change
- Make sure any rental or self-employed income you have personally is ready for MTD for Income Tax if it is over the threshold
- Diary the company’s filing and payment dates, because corporation tax penalties still apply in the usual way
Frequently asked questions
Does my limited company need MTD software?
Yes, if it is VAT-registered. If not, there is currently no MTD requirement, although good software still helps.
Will MTD for corporation tax come back?
HMRC said in July 2025 that it will not introduce it, and will modernise its corporation tax systems in other ways instead. We will update this page if that changes.
Can I file my CT600 myself?
Yes, with commercial software. HMRC’s free online filing service closed on 31 March 2026, so you now need commercial software.
What are the VAT penalties for MTD?
See VAT late filing penalties.
Talk to Accotax
Want this handled for you? Our team at Accotax can help with Making Tax Digital for your company. See our limited company accountants service, or contact us for a free, no-obligation quote.
This page is general guidance based on HMRC rules for the 2026/27 tax year, checked against gov.uk on 14 October 2026. It is not personal advice, so speak to an accountant about your own situation.
