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Limited Companies and Making Tax Digital
What MTD does and does not cover for UK limited companies in 2025/26 — MTD VAT today, MTD for Corporation Tax in the future.
Quick answers
Are limited companies in MTD?
For VAT, yes — every VAT-registered company must use MTD VAT. For Corporation Tax, no — MTD for CT is not currently mandated.
What still happens annually?
A CT600 with iXBRL accounts and computation, due 12 months after the period end, with Corporation Tax paid 9 months and 1 day after the period end.
There is a lot of confusion about whether limited companies are "in" Making Tax Digital. The short answer for 2025/26: MTD applies to your VAT, not to your Corporation Tax.
What MTD covers for Ltd companies today
MTD for VAT — mandatory if VAT registered
Every VAT-registered company must:
- Keep VAT records digitally.
- File returns through MTD-compatible software using digital links — no copy-paste from a spreadsheet to HMRC's portal.
This applies regardless of turnover and regardless of whether you joined VAT voluntarily. See VAT registration and returns and the MTD VAT submission walkthrough.
MTD for Corporation Tax — not yet
HMRC has paused mandatory MTD for Corporation Tax. There is no quarterly Corporation Tax filing for companies and no firm start date. You still file:
- A CT600 with iXBRL accounts and tax computation, 12 months after the accounting period end.
- Corporation Tax payment — 9 months and 1 day after the period end (or in instalments for large companies).
You can prepare and submit supported CT600 returns directly to HMRC through Unfiled after review and declaration. Unfiled checks your company and accounting period before payment and shows HMRC's response. This is Corporation Tax filing, separate from MTD VAT.
See CT600 vs Making Tax Digital for a side-by-side comparison.
MTD for Income Tax — not for the company
MTD ITSA applies to individuals (sole traders and landlords), not to companies. But you, the director, may still be in MTD ITSA personally if you also have qualifying personal property or self-employment income above the threshold.
What this means in practice
If you run a one-person Ltd company:
| Tax | Regime today | Cadence |
|---|---|---|
| Corporation Tax | Annual CT600 (iXBRL) | Yearly |
| VAT (if registered) | MTD VAT | Quarterly (or monthly) |
| PAYE | RTI (already digital) | On or before each payday |
| Director's Self Assessment | SA100 today; MTD ITSA from 2026/27/28 if personal income > threshold | Annual today; quarterly later |
What to do now
- If VAT registered, make sure your books and submissions are inside MTD-compatible software with digital links throughout.
- Keep clean digital records anyway — this is what MTD for Corporation Tax will eventually require.
- Track HMRC announcements; do not rush into "MTD for CT" software because no such regime is currently mandated.
For the company-side calculation see Corporation Tax for small companies and Corporation Tax explained.
Frequently asked questions
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VAT Registration and Returns: A Practical Guide
When to register for VAT, choosing between standard, flat-rate and cash schemes, filing returns under MTD, and the rules every UK business needs to know.
Example: MTD VAT Submission Walkthrough
Step-by-step example of preparing and submitting a Making Tax Digital VAT return using accounting software.
CT600 vs Making Tax Digital
A clear comparison: the annual CT600 corporation tax return versus the quarterly Making Tax Digital regime — what each is, who has to do it, and how they relate.
Corporation Tax for Small Companies
How the small profits rate, marginal relief, associated companies, payment dates and reliefs work in practice for a UK small Ltd company.