On 12 November 2020, HMRC published the long-awaited consultation on Making Tax Digital for corporation tax (MTD for CT), confirming it's plans to extend MTD to companies.
The consultation covers the detail of the design, identifies some of the issues which businesses and practitioners may face, and asks for comments.
The basic elements of the proposed design are that all entities within the charge to CT will be required to:
- maintain their accounting records digitally
- use MTD compatible software to provide quarterly summary updates of their income and expenditure to HMRC using digital links (some exceptions will be allowed), and;
- submit an annual CT return using their MTD compatible software alongside the existing iXBRL (Inline Extensible Business Language) reporting requirements.
HMRC proposes to begin voluntary pilot for MTD for CT in April 2024, with mandation to follow form 2026 at the earliest.
Broadcast on 13 January 2021
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