Do Limited Companies Need to Register for Making Tax Digital?

Search “how to register a limited company for Making Tax Digital” and you’ll find a lot of confusion. That’s because MTD means different things for different taxes — and the headline rule catches people out: MTD for Income Tax does not apply to limited companies at all. Here’s what actually applies to your company.

MTD for Income Tax = individuals, not companies

Making Tax Digital for Income Tax (MTD ITSA) applies to individuals — sole traders and landlords — with qualifying income above the phased thresholds from April 2026 onwards. A limited company is a separate legal entity that pays Corporation Tax, not income tax on its profits, so it isn’t part of MTD for Income Tax. If you take a salary or dividends from your company, that’s personal income reported through Self Assessment, but the company itself doesn’t register for MTD ITSA.

What MTD does apply to your company

• MTD for VAT — if your company is VAT-registered, it’s already required to keep digital VAT records and file VAT returns through MTD-compatible software. This has applied to all VAT-registered businesses for some time.
• MTD for Corporation Tax — this is a future proposal. HMRC has signalled it won’t be mandated until later this decade at the earliest, and the timeline has moved before. It is not something you register for today.

So what should a company director actually do?

• If VAT-registered: make sure your VAT is running through MTD-compatible software (it should be already).
• For your personal tax: if you also have self-employed or rental income as an individual above the thresholds, you may fall under MTD for Income Tax personally — separate from the company.
• Keep good digital records regardless. When MTD for Corporation Tax eventually arrives, a company already on clean cloud accounting will barely notice.

Still unsure which applies to you?

The individual-vs-company distinction is exactly where people waste hours and make mistakes. We’ll tell you in five minutes precisely what applies to you and your company — and what you can safely ignore for now.

Get clarity on your company’s tax obligations

Tax Digital gives UK sole traders, landlords and small businesses clear, fixed-fee help getting ready for Making Tax Digital — digital records, quarterly updates and someone real to ask. Based in Norwich, working with clients across the UK.

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This article is general information, not personal tax advice. It reflects the 2025/26 tax year and the MTD timetable known at the time of writing; rules change — check your own position with us or HMRC before acting.