Ftax MTD for IT includes BOTH the Quarterly update form AND the End-of-Year form.

Making Tax Digital for limited companies

Making Tax Digital affects limited companies differently from sole traders and landlords, and there is a lot of out-of-date guidance about it. Here is what actually applies to your company now, what has been cancelled, and a separate change to Corporation Tax filing that does affect you from 2026.

What Making Tax Digital means for limited companies

For a limited company, Making Tax Digital currently means one thing: MTD for VAT. If your company is VAT-registered, your VAT returns must be filed digitally through compatible software. There is no MTD for your Corporation Tax, and MTD for Income Tax does not apply to companies at all, it is for individuals who report through Self Assessment.

Is there MTD for Corporation Tax? Cancelled in 2025

This is where a lot of guidance is now wrong. Making Tax Digital for Corporation Tax was proposed, but HMRC confirmed in its Transformation Roadmap in July 2025 that it does not intend to introduce it. There is currently no MTD for Corporation Tax and no quarterly Corporation Tax reporting requirement or MTD start date for companies to prepare for.

So the way your company reports its profits through the Corporation Tax return is not changing because of MTD. If you have seen pages implying a looming MTD for Corporation Tax deadline, they are out of date.

MTD for VAT for limited companies

If you are VAT-registered, you are already in Making Tax Digital. MTD for VAT has been compulsory for all VAT-registered businesses since April 2022, whatever your turnover. It means keeping digital VAT records and sending each VAT return to HMRC through compatible software rather than the old online form.

You must register for VAT once your taxable turnover passes £90,000 in any rolling 12-month period, though you can register voluntarily below that. Once registered, MTD for VAT applies and your VAT returns are filed digitally, usually every quarter.

Ftax files VAT returns in a fully MTD-compliant way. You can prepare the figures in your own spreadsheet and submit through the Ftax VAT form, or use the Ftax Cashbook, which calculates the VAT report for you and submits it. Ftax has been recognised by HMRC for online tax filing for over 20 years.

FOR BUSINESSES

Ftax Business MTD for IT

Ftax Business MTD for VAT (2026/27)

1 Credits

Free CT600 filing has closed: what companies do now

There is a different change that does affect limited companies, and it is easy to confuse with MTD, so it is worth being clear. It is not part of MTD. HMRC and Companies House closed their free joint online filing service, used by many small companies to file the CT600 and accounts, on 31 March 2026. From 1 April 2026, companies need commercial software to file their Corporation Tax return.

If you used to self-file for free through HMRC’s service, this is the practical change to act on. You now need recognised software to submit your CT600, whether or not anything about MTD applies to you.

Filing your CT600 with iXBRL

Your company still files a Corporation Tax return each year, and that filing is digital in its own way: HMRC requires the accounts and tax computations to be submitted as iXBRL alongside the CT600. This is not part of MTD, but it is the digital filing that actually applies to your company’s profits, and it now has to go through commercial software.

The Ftax Company product files the CT600 and generates the iXBRL Accounts and Computations for you, with a micro entity or small company template, and attaches them to the submission automatically. So both digital obligations your company has, VAT and the CT600, are covered by Ftax.

Do company directors need MTD for Income Tax?

MTD for Income Tax can still reach you personally, even though it does not apply to your company. If you also have income as a sole trader or from property, and that income is above the threshold, you are in MTD for Income Tax as an individual. Salary and dividends from your company do not count towards that threshold. If this applies to you, see our guidance for sole traders and landlords.

How Ftax files your company VAT and CT600

Ftax has been recognised by HMRC for online tax filing for over 20 years and lets you handle both your company’s VAT and Corporation Tax filing from one account, including CT600 filing now that the free HMRC service has closed.

  • CT600 filed with iXBRL Accounts and Computations included
  • Micro entity or small company accounts template
  • VAT returns filed MTD-compliantly from spreadsheet or Ftax Cashbook
  • A recognised replacement for the closed free HMRC filing service
  • Works on PC, Mac, tablet and phone, every submission archived

FOR BUSINESSES

Ftax Business MTD for IT

Ftax Business MTD for VAT (2026/27)

1 Credits

Limited company MTD FAQs

Is there Making Tax Digital for Corporation Tax?

No. HMRC confirmed in July 2025 that it does not intend to introduce MTD for Corporation Tax. There is currently no quarterly Corporation Tax reporting requirement or MTD start date for companies to prepare for.


Does MTD for Income Tax apply to my company?

No. MTD for Income Tax is for individuals, sole traders and landlords. Your company reports through the Corporation Tax return, not Self Assessment. You may be in MTD for Income Tax personally if you have sole-trade or property income over the threshold, but the company itself is not.


I used to file my CT600 free through HMRC. What now?

The free HMRC and Companies House joint filing service closed on 31 March 2026. From 1 April 2026 you need commercial software to file your Corporation Tax return. The Ftax Company product does this and generates the iXBRL accounts and computations for you.


My company is VAT-registered. What do I need to do?

Keep your VAT records digitally and file each VAT return through MTD-compatible software. Ftax does this from your own spreadsheet or via the Ftax Cashbook, which calculates the VAT report for you.


Disclaimer

Ftax does not provide accounting, tax, business or legal advice. This guide has been provided for information purposes only. You should consult with your own professional advisors or with HMRC for advice directly relating to your business before taking action in relation to any of the content provided. Ftax Support will only be able to assist you with matters directly concerning the Ftax products and service.

FOR BUSINESSES

Ftax Business MTD for IT

Ftax Business MTD for VAT (2026/27)

1 Credits

For self-employed businesses and landlords filing their own MTD for Income Tax updates and tax return.

  • File quarterly updates and the end-of-year tax return directly to HMRC
  • Import income and expense totals via CSV or from the Ftax Cashbook
  • HMRC recognised and MTD compliant
  • Low-cost filing for one tax year on one credit

FOR AGENTS

Ftax Agent MTD for IT

Ftax Agent MTD for VAT (2026/27)

2 Credits

For accountants and agents filing MTD for Income Tax on behalf of clients.

  • File quarterly updates and end-of-year tax returns for clients
  • Import income and expense totals via CSV or from the Ftax Cashbook
  • HMRC recognised and MTD compliant
  • Flexible credit options to suit your practice

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