Does Making Tax Digital apply to limited companies?
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Does Making Tax Digital apply to limited companies? No. Making Tax Digital for Income Tax, which began on 6 April 2026, covers individuals: sole traders and landlords registered for Self Assessment. A limited company uses Making Tax Digital for VAT if it is VAT registered. No. Quarterly updates belong to Making Tax Digital for Income Tax, which is for individual sole traders and landlords. A company pays Corporation Tax and files a Company Tax Return. No. GOV.UK says employment (PAYE) income and dividends, including those from your own company, do not count towards qualifying income. If it is VAT registered, yes. GOV.UK says Making Tax Digital for VAT requires all VAT-registered businesses to keep digital records and file VAT returns using software. Read the full answer, with every source, at rightotax.co.uk.
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Read the full answer, with every source
The one-minute version
Transcript
Does Making Tax Digital apply to limited companies? No. Making Tax Digital for Income Tax, which began on 6 April 2026, covers individuals: sole traders and landlords registered for Self Assessment. A limited company uses Making Tax Digital for VAT if it is VAT registered. No. Quarterly updates belong to Making Tax Digital for Income Tax, which is for individual sole traders and landlords. A company pays Corporation Tax and files a Company Tax Return. Read the full answer, with every source, at rightotax.co.uk.
Voice and visuals made with automated software, including AI.
This is general information to help you understand the rules. It isn't tailored to your circumstances, so check your own position before acting on it.
Righto Tax is a trading name of NJG Consultancy Ltd, registered in England and Wales, company number 16095900. Registered office: Jubilee House, East Beach, Lytham St Annes, FY8 5FT.