Making Tax Digital has been in the headlines recently, first for VAT and then Income Tax Self Assessments in April 2026. People have been speculating about whether MTD for Corporation Tax is coming next.

The short answer is simple: you don’t, at least not right now, and not in the way some early reports suggested.

This article will break everything down so you can identify fact from fiction.

What was MTD for Corporation Tax supposed to be?

Making Tax Digital, or MTD, was first introduced to make tax simpler and more accurate. The idea was that everyone’s records would be digital eventually and filed through MTD-compatible software. This, in turn, would hopefully lead to fewer mistakes and less paperwork.

HMRC started with VAT, meaning all VAT-registered businesses must follow MTD rules. Then MTD ITSA was announced and is set to launch in April 2026. It will affect Sole Traders and Landlords earning £50,000. The earnings limit will then be lowered to £30,000 the following year. 

So will it affect Corporation Tax next?

HMRC have confirmed that this is not a part of their current roadmap despite earlier suggestions it might be. The original proposal discussed for MTD for Corporation Tax would have taken this a step further for Limited Companies. 

Companies would have needed to:

• Keep digital records of all income and expenses throughout the year.
• Use MTD compatible software for filing Corporation Tax data.
• Submit quarterly summaries to HMRC, not just a single annual return.
• File the final CT600 return digitally through software.

On paper, it sounded neat and straightforward. In reality, it would have been a major shift for many businesses, especially smaller ones, creating extra work, new software requirements, and a lot of change to get used to.

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Why it’s not happening

Fast forward to July 2025. HMRC officially confirmed that MTD for Corporation Tax is not going ahead. Or at least not for now.

The reasons are simple:

• Corporation Tax is complex, and businesses vary hugely in size and structure. A one-size-fits-all digital system just doesn’t work.
• The proposed quarterly reporting system would have added a lot of admin without delivering clear benefits for most companies.
• Pilot schemes and consultations showed that many businesses weren’t ready or didn’t need this level of reporting.

The result? Companies can continue filing their Corporation Tax as usual, without worrying about new MTD obligations.

What this means for businesses

Just because MTD for Corporation Tax isn’t happening right now doesn’t mean you should slack on your records. 

HMRC still expects everything to be accurate, and in practice, keeping things digital just makes life a whole lot easier. Having your accounts in software saves time when you’re preparing statutory accounts or calculating Corporation Tax. It also cuts down the chance of mistakes and makes other filings, like VAT, a lot simpler.

So, although there’s no legal requirement to use accounting software or even an accountant, it really does make running the numbers less of a headache. Going digital is normally a smarter, less stressful way to keep your business on track.
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MTD is still alive elsewhere

MTD for Corporation Tax might have been taken off the HMRC roadmap, but Making Tax Digital isn’t going anywhere. Businesses still need to be aware of their obligations for VAT and the upcoming Income Tax Self Assessment changes.

MTD for VAT

For a lot of businesses, MTD is already a mandatory part of their business lives. All VAT-registered companies must keep digital records and submit VAT returns using MTD-compatible software. Staying organised digitally not only keeps HMRC happy, but it also makes managing your VAT far less of a headache.

If you’re a VAT-registered business and are looking for a simple way to stay compliant, our accounting software makes VAT filing easy and affordable. You can use Crunch Free and just add on VAT filing for just £4+VAT per month. It’s a straightforward, low-cost way to meet the MTD VAT requirements. 

Expert accountant support is always available whenever you need it. You can upgrade for unlimited advice whenever you want. Flexible, straightforward online accounting support that’s designed to fit around your business. 

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MTD for Income Tax Self Assessment

MTD for Income Tax Self Assessment (ITSA) is coming in April 2026 for Sole Traders and Landlords with yearly income over £50,000. The threshold will then drop to £30,000 the following year. Even if Corporation Tax remains traditional, having your records digital and up to date now will make ITSA filings much smoother when they arrive.

If you want to handle things yourself, Crunch will be offering software-only options, so you can manage your quarterly submissions and Self Assessments. Alternatively, if you sign up ahead of the April 2026 launch and get our MTD ITSA Sole Trader package (currently 50% off), we’ll take care of it all for you. That includes all four quarterly submissions, your Self Assessment, and unlimited advice for any questions along the way. This way, you can stay focused on running your business while we handle the filings.

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What this means for you

MTD for Corporation Tax isn’t happening, so your CT600 filings will stay exactly the same. No quarterly digital submissions, and no MTD requirements. That said, keeping your records digital is still a smart move. 

Accounting software can help you stay organised, accurate, and ready for any filings that your business needs to do. That way, when the deadlines come, you’re not left scrambling.

For now, you can get on with running your business and not stress about MTD for Corporation Tax creeping up on you. If keeping your accounts in order feels like a headache, Crunch can take care of it all. Our Limited Company accounting can handle everything from those accounting questions that keep you up at night to filing your Confirmation Statement.

Learn more now.

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