A significant shift in HMRC’s digital strategy, Making Tax Digital (MTD) has officially been scrapped for Corporation Tax. After years of delays and anticipation the government has confirmed it will no longer be pursuing the extension of Making Tax Digital to Corporation Tax.

At Hanley & Co. Accountants, this month’s blog offers advice regarding the news about MTD for Corporation Tax and what it means for your business. For more information, call us in Staveley, near Kendal on 01539 821869.

Why Has it Been Scrapped?

One of the main reasons for scrapping MTD for Corporation Tax is that it is incredibly complex. HMRC cited that it needs to prioritise resources and focus on more immediate digital improvements for corporate taxpayers.

How Will this Affect Businesses?

This move offers welcoming breathing space for companies already dealing with multiple compliance responsibilities. Companies will continue to file Corporation Tax return using existing processes, which for many will be handled via their accountants.

However, this doesn’t mean digitalisation is not going to happen. Businesses are still expected to adopt digital practices for VAT.

What Should Your Business Do Now?

Even without Making Tax Digital for Corporation Tax, companies should remain ahead. Keep digital records where possible, improving efficiency and simplifying reporting.

Staying informed about changes to MTD for VAT means you are well-prepared, and reviewing software solutions ensures you can adapt to future compliance needs.

Although the cancellation of Making Tax Digital for Corporation Tax may feel like a reprieve for many, the broader digitalisation of the tax system is still on track. Your business should use this time to discuss with your accountant and prepare for changes in HMRC’s digital strategies.

Contact Hanley & Co. Accountants

If you require accounting advice, contact Hanley & Co. Accountants in Staveley, near Kendal. Serving across Cumbria, call us on 01539 821869. Alternatively, send us a message via our contact form and we will be in touch.