MTD for Limited Companies: What You Need to Know
Quick Answer
Making Tax Digital for Income Tax (starting in 2026) does not apply to limited companies; it only applies to self-employed individuals and landlords earning over £50,000.
If you are a director of a limited company, you have probably heard a lot of noise about Making Tax Digital (MTD) arriving in April 2026.
You might be wondering if you need to buy new software and start reporting your company's income every quarter.
The short answer is no.
Who the 2026 rules apply to
The changes happening in April 2026 are specifically for MTD for Income Tax (also known as MTD ITSA).
These rules only apply to sole traders and landlords who have an annual income over £50,000. (The threshold drops to £30,000 in April 2027).
If you run a limited company, your company pays Corporation Tax, not Income Tax. Therefore, you are entirely out of scope for the 2026 rollout.
If you are a company director who also earns income as a sole trader or landlord on the side, that personal income might fall under MTD ITSA if it exceeds the threshold.
Do you need to do anything?
For your limited company, nothing changes right now. You will continue to file your annual accounts and Corporation Tax returns as usual.
While Abridge is designed to help sole traders and landlords with their MTD updates, it's always good to stay informed about HMRC's future plans for companies.
Ready to comply with MTD?
Abridge makes it easy to submit your spreadsheet to HMRC.
Was this article helpful?
Ready to comply with MTD?
Abridge makes it easy to submit your spreadsheet to HMRC.