Q&A: MTD for Corporation Tax – are we set up?

Q. My company has been reporting our VAT returns under MTD since April 2021. As our systems are already set up and compliant with this, are we right in assuming we will already be set up for MTD for Corporation Tax as well? We don't want to incur further costs if that is possible.

A: It would be wise to discuss this with your software provider. Corporation Tax information needs to be reported using UK GAAP principles, whereas your VAT accounting may be cash-based. It might be that the software is able to operate on two bases at the same time, but it would be risky to make that assumption. It's also possible that your VAT periods won't coincide with the Corporation Tax reporting quarters. The staging date won't be until 2026 at the earliest but it would be prudent to prepare in good time. A useful starting place is the recent MTD Corporation Tax consultation document, which details much of what is likely to be required.

About the Author

Beverley Howells

Partner

Beverley is a partner with Torgersens, specialising in tax. Her role covers all aspects of taxation, from managing compliance to providing business advice. Her main areas of expertise are in business tax and corporation matters and in particular, acting for owner-managed businesses. Having joined the firm as a graduate trainee, Beverley qualified as a Chartered Accountant in 2000.   Outside of work, Beverley’s favourite place is the beach, enjoying a walk along our beautiful North East coastline. Ideally, she would be joined by a canine companion and has recently started a campaign for her own office dog! 

To get in touch please e-mail beverley.howells@torgersens.com.