HMRC has stated in a recent consultation that Making Tax Digital (MTD) for corporate tax (CT) (MTD for CT) would not be enforced ‘at the earliest’ until 2026. The consultation takes into account how the standards built for MTD could be defined for businesses within the framework of CT charges. In the consultation it explores how the principles developed for Making Tax Digital (MTD) for VAT could be extended to corporate taxation (CT).
Based on the consultation, entities within the charge to corporation tax would need to:
- maintain income and expenditure records digitally;
- use MTD compatible software to provide quarterly summary updates of their income and expenditure to HMRC;
- provide an annual CT return using MTD compatible software.
On 30 March 2020 HMRC confirmed an extension to the deadline for implementing digital links for MTD for VAT. In announcing this extension, HMRC said: ‘We understand that the impact of COVID-19 is creating extremely difficult times for all, and we are committed to helping in every way possible all those businesses facing unprecedented challenges. Therefore, we are providing all MTD businesses with more time to put in place digital links between all parts of their functional compatible software. This means that all businesses now have until their first VAT return period starting on or after 1 April 2021 to put digital links in place.’
How can Asmat & Co help?
There are a number of ways in which we may be able to help. It’s vital to ensure your accountant is compliant with new changes in MTD for CT. If you need help, please call us on 01753 424 968 or use our contact form. We can offer a free consultations, support and advice to avoid contact.