HMRC have confirmed that they do not intend to introduce Making Tax Digital (MTD) for Corporation Tax. The ATT welcomed this announcement, which came following a period of uncertainty and lack of progress towards expanding MTD to limited companies. 

The announcement was made via HMRC's Transformation Roadmap, which was published on 21 July 2025.  Instead of expanding MTD to companies, HMRC will look to develop an approach to the future administration of Corporation Tax which suits the varying needs of the diverse corporate population. 

Brief history of MTD for Corporation Tax

On 12 November 2020 HMRC published a consultation on the potential design of MTD for Corporation Tax (MTD for CT).  The consultation considered a number of areas, including the scope of MTD for CT, digital record keeping, filing updates, establishing the final corporation tax liability and special cases and exemptions. 

The ATT submitted a response to the consultation in March 2021. 

On 30 November 2021,  HMRC's response to the consultation was published, stating that the Government was committed to ongoing collaboration with stakeholders to help shape a service design that would work for all. The Government pledged to provide sufficient notice ahead of any implementation to allow businesses time to prepare.

After the publication of the consultation outcomes in 2021, there was very little movement on MTD for CT, until the announcement in July 2025 that the expansion of MTD to limited companies will not go ahead.