Q. My company has been reporting our VAT returns under MTD since April 2021. As our systems are already set up and compliant with this, are we right in assuming we will already be set up for MTD for Corporation Tax as well? We don't want to incur further costs if that is possible.
A: It would be wise to discuss this with your software provider. Corporation Tax information needs to be reported using UK GAAP principles, whereas your VAT accounting may be cash-based. It might be that the software is able to operate on two bases at the same time, but it would be risky to make that assumption. It's also possible that your VAT periods won't coincide with the Corporation Tax reporting quarters. The staging date won't be until 2026 at the earliest but it would be prudent to prepare in good time. A useful starting place is the recent MTD Corporation Tax consultation document, which details much of what is likely to be required.
The information provided in this blog is for general informational purposes only and should not be considered professional advice. As far as we are aware, the content is accurate at time of publication. Torgersens assumes no responsibility for errors or omissions in the content or for any actions taken based on the information provided.
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