Making Tax Digital Timeline for Limited Companies

Published / Last Updated on 25/08/2022

Timeline for Making Tax Digital (MTD) for limited company businesses for Value Added Taxes and Corporation Taxes.

Value Added Tax (VAT):

  • 6th April 2019: most VAT registered businesses with turnover exceeding the VAT registration threshold must retain digital records and submit their VAT returns to HMRC using 'functional compatible software'.
  • 6th April 2021: the digital link between compatible software programs or products and HMRC must be in place. 
  • 6th April 2022: all VAT registered businesses must retain digital records and submit their VAT returns to HMRC using compatible software unless an exemption such as a digital exclusion applies.  This includes those below the VAT registration threshold that are registered for VAT. 
  • 1st November 2022 (quarterly VAT returns): i.e., right now for the trading quarter 1st August 2022 to 31st October 2022, your next VAT return must be via a compatible external bookkeeping software as your HMRC VAT Online account is no longer available.  Your time is already up, and you need to get your books in order and digitised right now for this quarter’s trading.
  • 15th May 2023 (annual VAT returns): Businesses that file yearly rather than quarterly VAT returns will still be able to use their HMRC VAT online account until 15 May 2023.

None-VAT registered businesses can be exempt but as soon as your turnover exceeds the VAT threshold, you must immediately use MTD compatible software to complete VAT returns.

Corporation Tax (CT):

  • 6th April 2024 companies can voluntarily start using MTD for corporation tax under a HMRC pilot scheme.
  • 6th April 2026 all companies must use MTD for corporation tax.

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