HMRC confirms end of Making Tax Digital for Corporation Tax

Government drops   Making Tax Digital for Corporation Tax from long-term strategy

In July 2020, the Government published its 10-year Tax Administration Strategy. The aim was to develop a fully digital tax system that operated closer to real time, improved fairness, and strengthened public trust. Making Tax Digital for Corporation Tax (MTD for CT), was intended to be a key component of that vision.

However, in July 2025, HMRC confirmed that it will not introduce Making Tax Digital for Corporation Tax (CT), marking a significant shift in the digital direction of corporate tax.

HMRC focuses on MTD for ITSA instead of Making Tax Digital for Corporation Tax

The decision not to implement Making Tax Digital for Corporation Tax comes as HMRC redirects its focus to the phased rollout of MTD for Income Tax Self-Assessment (ITSA). This is now progressing in two stages:

• From April 2026, sole traders and landlords with income above £50,000 must comply.
• From April 2027, the threshold will reduce to include those earning over £30,000.

Although Corporation Tax is no longer included in the Making Tax Digital programme, other areas of tax are still undergoing major digital transformation. Businesses affected by MTD for ITSA can find detailed guidance in our recent article:
Making Tax Digital for Income Tax – What self-employed individuals and landlords need to know before 2026

HMRC’s latest position on Making Tax Digital for Corporation Tax

In a statement confirming the change of direction, HMRC said:

“HMRC will modernise services for Corporation Tax (CT), beginning with a renewal of internal systems for CT to provide the foundation for future improvements. HMRC will not introduce MTD for CT but are developing an approach to the future administration of CT that suits the varying needs of the diverse CT population.”

This shift means that while Making Tax Digital for Corporation Tax is no longer a requirement, businesses will begin to see new digital tools, faster online processing, and simplified interactions as part of wider HMRC modernisation.

Long-term roadmap: digital CT services but no Making Tax Digital mandate

Although the formal Making Tax Digital for Corporation Tax initiative has been shelved, HMRC continues to advance its wider digital roadmap. It aims for 90% of all tax interactions to take place digitally by 2030.

This includes:

• Improved digital platforms tailored for business users
• The introduction of AI-driven tools for submission and calculation support
• Prepopulated fields to minimise manual errors

HMRC has also acknowledged that some taxpayers are not well-placed for digital-only services. As such, it is maintaining dedicated support channels for those who need adviser-led assistance.

HMRC commits to early consultation on future CT changes

While Making Tax Digital for Corporation Tax is no longer going ahead, HMRC remains committed to transparency. It has reiterated plans to consult on any future changes to Corporation Tax processes and to give businesses early visibility of new developments, timelines, and compliance expectations.

Get in touch

Should you need expert support with corporation tax digital planning, get in touch with our expert team today. We offer tailored cloud‑accounting solutions, MTD for VAT readiness, and strategic tax advisory services to help your business navigate the evolving CT landscape and prepare for future digital shifts in tax administration.