VAT Returns and MTD for Corporation Tax

Q. We have been reporting our VAT returns under MTD since April 2021. As our systems are already set up and compliant with this, am I right in assuming we will already be set up for MTD for Corporation Tax as well? I don’t want to incur further costs if that is possible.

A: It would be prudent to discuss this with your software provider. CT information needs to be reported using UK GAAP principles, whereas your VAT accounting may be cash-based. It might be that the software is capable of operating on two bases contemporaneously, but it would be unwise to make that assumption. It’s also possible that your VAT periods won’t coincide with the CT reporting quarters. The staging date won’t be until 2026 at the earliest but preparing early is a good idea. Start by reviewing the recent consultation document, which details much of what is likely to be required.




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