Making Tax Digital for Corporation Tax scrapped
HMRC has made a significant announcement that Making Tax Digital (MTD) for Corporation Tax will not be going ahead. After years of negative feedback, mainly around the strain extra digital reporting would put on small and medium businesses, HMRC has listened. In their recent update, they said they “do not intend to introduce MTD for Corporation Tax” and will instead look at better ways to meet the needs of the UK's diverse corporate sector.
What does this mean for you?
This is welcome news for companies of all sizes, but especially for those businesses thinking about incorporating. You can now plan ahead without worrying about additional strain. HMRC's announcement means limited companies are not facing these changes any time soon.
Why consider incorporating now?
Quarterly, fully digital reporting is still on the cards for sole traders and landlords with income over £50,000, starting from April 2026. By incorporating, you can sidestep these extra requirements whilst also benefiting from a range of tax planning opportunities and added flexibility for your business.
We're here to help
If you're considering whether to stay as a sole trader or make the move to a limited company, let's talk it through. We can help you understand what's best for your situation and guide you every step of the way.