HMRC has announced that Making Tax Digital for Corporation Tax has been scrapped. On 22nd July, HMRC published its Transformation Roadmap, setting out the Government’s vision for HMRC as “more automated, more focused on self-service and better set up to get things right first time”. The 14,000 word Roadmap sets out more than 50 measures that HMRC claims will transform the UK’s tax and customs system. As well as scrapping MTD for Corporation Tax, the measures include:
- A new online Pay As You Earn (PAYE) service for around 35million UK taxpayers, allowing them to log into their accounts via the HMRC app or personal tax account to update details such as income, allowances, reliefs and expenses. HMRC says this will save them over £50million a year by replacing letters with digital reminders, reducing the reliance on paper correspondence by the 2028/29 tax year.
- Moving from the Government Gateway to gov.uk One Login, starting by late 2026 for individuals
- Expanding the rollout of the voice biometrics pilot on HMRC’s helplines
- Digitalising the inheritance tax service
- Delivering a digital disclosure service to allow taxpayers to correct mistakes, pay liabilities and penalties for all taxes and duties.
We should like to remind clients that Making Tax Digital for Income Tax will still go ahead. Clients who are sole traders and/or landlords with a total income above £50,000 will be subject to Making Tax Digital (MTD) for Income Tax from April 2026. Those clients who are sole traders and/or landlords with a total income above £30,000 will be subject to MTD for Income Tax from April 2027.
