Making Tax Digital for Corporation Tax

25th November 2020

Earlier this month HMRC published their consultation and plans for Making Tax Digital for corporation tax (MTD for CT).


HMRC have proposed the main elements of the scheme to be:-


  1. All entities within the charge of corporation tax will need to maintain their records digitally;
  1. Those entities should use MTD compliant software to file quarterly summary updates of their income and expenditure and
  2. Entities should be able to submit the annual corporation tax return (known as a CT600) via their MTD compliant software.


The pilot scheme for the MTD for CT will open in April 2024 and at the earliest it will be mandatory for all companies which do not meet an exemption criteria to join the scheme in 2026.


Many companies will already be prepared because of the digital record keeping requirements from Making Tax Digital for VAT. Companies not VAT registered will need to prepare for this change.


The requirement to join MTD for CT may be several years away but companies may wish to prepare early and take advantage of the benefits of cloud accounting software which are MTD compliant.


Some of the many benefits to transferring your records to cloud accounting software can include:

  • Time saved on administration and bookkeeping
  • Access to management information throughout the year using reports


Please contact your local office for further information if you require further advice on this matter.

Other items in Blogs
Elizabeth Prior
26th November 2021 XERO: User roles and permissions

For businesses that require staff to have access to their Xero but do not want their employees to be able to view all details of their business there are different permissions and roles you can allocate to different users.   Roles Adviser- This role is the highest role you can give someone; therefore, it includes…

Ian Piper
11th November 2021 COP26: Net Zero disclosures in future statutory accounts?

Arising from the current COP26 global warming conference, Sage, The ACCA and the ICC have called on urgent action to be taken to standardise and simplify carbon reporting to help SMEs join the race to Net Zero. Their new report titled ‘Think Small First’ calls on policymakers to remove the existing administrative burdens that come…

Elizabeth Prior
10th November 2021 Which Xero package is right for me?

If you’ve never used a cloud software before coming to a decision on what package to choose can be quite daunting. Well, in this blog I am going to summarise what different packages are available and tell you what each package does and also, what it doesn’t do.   There are three packages that Xero…

Vanessa Pearson
10th November 2021 IR35 tax bill of £281k for Sky presenter

HRMC continue their campaign against broadcasters, with another successful case against former Sky presenter Dave Clark. Mr Clark presented and commentated on professional darts tournaments, and tried to argue his company’s relationship to Sky was one of self-employment.   His appeal has been rejected, with almost all the usual “badges of trade” having failed. Sky…

David Salmon
9th November 2021 Pensions experts say a minimum of £10,900 a year needed to retire

A single person will need post-tax annual income of £10,900 for a minimum standard of living in retirement, according to the Pensions and Lifetime Savings Association (PLSA).   The minimum retirement living standard is based on the Joseph Rowntree Foundation’s Minimum Income Standard and covers a typical retiree’s basic needs plus enough for some social…

Jodie Pheby
8th November 2021 Self assessment deadline… the countdown is on!

The new year is fast approaching and so is the deadline for filing your Self Assessment tax return – 31 January 2022 will be here before you know it.  Our tax experts can ensure everything is completed accurately and submitted on time.   Even if you file your 2020/21 tax return now, you do not…