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Does MTD apply to limited companies?
Last verified 23 October 2026
No, not Making Tax Digital for Income Tax. That covers sole traders and landlords registered for Self Assessment. A limited company pays Corporation Tax on its profits instead. If the company is VAT registered, it must follow Making Tax Digital for VAT.
Gov.uk says Making Tax Digital for VAT requires all VAT-registered businesses to keep records digitally and file their VAT Returns using software. That rule applies whether the business is a company or not.
If you own property through a limited company, the company's rental profits fall under Corporation Tax. Dividends you take from your own company do not count towards your qualifying income for Making Tax Digital for Income Tax. But if you also let property or trade in your own name, that income does count, and you may need to use the service if it is over the threshold.
HMRC consulted on Making Tax Digital for Corporation Tax from November 2020 to March 2021. The consultation page gives no start date.
Read next
- What is Limited company buy-to-let? →
- What Is Making Tax Digital? The 2026 Income Tax Guide →
- MTD checker →
Sources
- GOV.UK: Find out if and when you need to use Making Tax Digital for Income Tax
- GOV.UK: Corporation Tax: Overview
- GOV.UK: VAT Notice 700/22: Making Tax Digital for VAT
- GOV.UK: Work out your qualifying income for Making Tax Digital for Income Tax
- GOV.UK: Making Tax Digital for Corporation Tax