Making Tax Digital for limited companies: what applies
Running a limited company? Three different things are called “Making Tax Digital”. Here is which ones apply to your company, which may apply to you personally, and what to do.
Your company: Corporation Tax
Making Tax Digital for Income Tax is for individuals registered for Self Assessment who get self-employment or property income. A limited company pays Corporation Tax and files its company tax return as before.
In its Transformation Roadmap of July 2025, HMRC said it does not intend to introduce Making Tax Digital for Corporation Tax.
Your company: VAT
Making Tax Digital for VAT applies to every VAT-registered business: since April 2019 above the VAT threshold, and since April 2022 for all VAT-registered businesses, whatever their turnover. You keep digital records and file VAT returns through compatible software.
HMRC says all VAT-registered businesses should now be signed up, so you no longer need to sign up yourself. HMRC keeps a separate list of software for Making Tax Digital for VAT.
You, as a director
What counts towards your qualifying income for Making Tax Digital for Income Tax:
| Your income | Counts towards qualifying income? |
|---|---|
| Salary from your company (PAYE) | No |
| Dividends, including from your own company | No |
| Rent from a property you own personally | Yes (your share, before expenses) |
| A side business you run as a sole trader | Yes (turnover, before expenses) |
If your rental and self-employment income passes the threshold (£50,000 from April 2026, £30,000 from April 2027, £20,000 from April 2028), Making Tax Digital for Income Tax applies to you personally. Your salary and dividends still go in your tax return — which you then file through your MTD software, so it needs to handle them.
Software that also does MTD for VAT
55 products recognised for Making Tax Digital for Income Tax also do MTD for VAT and can send the final tax return; 22 of them can already report a salary and dividends. The most searched:
| Software | Type | Final tax return | Sole trader | UK property | Foreign property | |
|---|---|---|---|---|---|---|
 QuickBooks | Records | Yes | Ready now | Ready now | Not included | Website |
 FreeAgent | Records | Yes | Ready now | Ready now | Not included | Website |
| Records | Yes | Ready now | Ready now | Not included | Website | |
 QuickFile | Records | Yes | Ready now | Ready now | Not included | Website |
 Clear Books | Records | Yes | Ready now | Ready now | Ready now | Website |
 Pandle | Records + Bridging | Yes | Ready now | Ready now | Not included | Website |
 My Tax Digital (Free) | Records + Bridging | Yes | Ready now | Ready now | Ready now | Website |
 AbraTax | Bridging | Yes | Ready now | Ready now | Ready now | Website |
| 1 1 MTD Bridge | Bridging | Yes | Ready now | Ready now | Ready now | Website |
| 123 e-Filing | Bridging | Yes | Ready now | Ready now | Ready now | Website |
In a partnership instead?
Partnerships will also have to use Making Tax Digital for Income Tax in the future; HMRC has not set the date yet. Your share of partnership profit does not count towards your own qualifying income.
Do you have rental or self-employed income too?
Check in 2 minutes whether MTD applies to you personally, and from when.
Sources (checked 9 October 2026): GOV.UK — MTD for Income Tax explained, qualifying income, when you need to use MTD (partnerships), VAT Notice 700/22, MTD for VAT from April 2022, charging VAT (sign-up); Association of Taxation Technicians — HMRC's Transformation Roadmap on MTD for Corporation Tax (21 July 2025). Software data: HMRC software finder (Open Government Licence v3.0). This is guidance, not tax advice.