By Anna Jordan on Small Business UK – Advice and Ideas for UK Small Businesses and SMEs
The government has confirmed that Making Tax Digital (MTD) will be scrapped for corporation tax (CT).
It was revealed in passing in HMRC’s Transformation Roadmap. Within the document, it states:
‘HMRC do not intend to introduce MTD for CT but are developing an approach to the future administration of CT that is suited to the varying needs of the diverse CT population.’
It remains to be seen what this means for how corporation tax processes will develop. What we do know is that it will begin with ‘the renewal of existing internal systems’ for corporation tax to make way for future innovations.
Andrew Tall, partner at HW Fisher, goes into more detail: “One aspect of the ongoing digitalisation effort involves discussions between HMRC and key stakeholders around the format of CT computations, with HMRC highlighting the need for standardisation and improved disclosure.
“Future areas of the project are expected to significantly expand mandatory disclosure in elements that are currently not consistently disclosed, such as the presence and content of a detailed profit and loss account, the expenses therein that are analysed, and the level of detail of such disclosure,” he said.
It could