MTD for Corporation Tax: The Next Phase
Making Tax Digital for Corporation Tax is the next phase of HMRC's digital initiative. Companies with turnover above £500,000 will be required to comply from April 2026.
**Timeline**
MTD for Corporation Tax becomes mandatory from April 2026 for companies with turnover above £500,000. Smaller companies can choose to comply voluntarily. The implementation will be phased, with larger companies required to comply first.
**Digital records**
Your company needs to store all income and expense records in digital form. This encompasses all sales transactions, purchases, and any modifications you've recorded. The format you use must be compatible with HMRC's digital infrastructure.
**Filing requirements**
Companies must file their Corporation Tax return using MTD-compatible software. The software must be able to connect to HMRC's systems and file the return directly.
**Preparation**
Companies should start preparing for MTD for Corporation Tax now. This includes reviewing your current accounting systems and considering whether they'll be compatible with MTD requirements. Many companies will need to upgrade their software or implement new systems.
**Software**
There are many MTD-compatible software packages available for Corporation Tax. It's important to choose software that meets your business's needs and that's compatible with HMRC's systems.
**Benefits**
The benefits of MTD for Corporation Tax include reduced errors, faster processing of returns, and potentially faster refunds. Companies also benefit from real-time visibility of their tax position.
**Support**
HMRC is committed to helping companies prepare for MTD for Corporation Tax. They've published guidance on software compatibility and transition planning. Many software vendors also provide implementation support and training for their platforms.
**Learn more:** For professional guidance on this topic, visit [Accounted For Ltd](https://accountedforltd.co.uk/mtd).
Learn more: For professional guidance on this topic, visit Accounted For Ltd