HMRC scraps MTD for corporation tax – digital shift stays

In its latest roadmap, HMRC confirms the cancellation of MTD for corporation tax - something that had never been assigned a firm date. This decision appears to reflect a reprioritisation following delays to MTD for income tax, which is now expected to launch in April 2026. With resources focused on that, corporation tax has been quietly removed from the MTD rollout.

But the tax gap in corporation tax is now estimated at nearly 16%. That figure demands attention, and HMRC still has strong incentives to modernise this area. Digitalisation is not off the table, it is simply being approached from a different angle.

The roadmap outlines more than 50 digital projects and services being developed over 2025 and 2026. These include tools to streamline existing services, simplify taxpayer interactions, and reduce dependency on traditional phone-based support. In short, HMRC is not stepping back. It is changing tactics.

The planned developments include:

• A new online PAYE service enabling employees to check and update income, allowances and reliefs directly via their personal tax account or the HMRC app
• A digital expense claims system for employees to submit allowable expense claims and upload evidence in one place
• Improvements to self-employment services, with simplified registration and a clearer exit process for those no longer needing to file returns
• Wider use of biometric voice recognition to verify taxpayer identities

These changes are part of a broader ambition. By 2030, HMRC wants 90% of taxpayer interactions to be digital. That includes the continued push towards use of the HMRC app and online personal tax accounts. The intent is clear: the future of taxpayer engagement is digital-first.

The introduction of more digital tools can improve efficiency, reduce friction and offer businesses greater control over their data. However, this only holds true if organisations are ready to work with those systems - technically, operationally and culturally.

Businesses must recognise that compliance will look different in just a few years. Waiting until deadlines are imposed is not a strategy. Instead, reviewing internal processes now and ensuring they are built to interact with HMRC’s future digital environment is the more sustainable approach.

As accountants and advisers, we need to challenge the idea that digital transformation is something that only affects HMRC. In practice, it affects us all. Businesses that are prepared will benefit from fewer delays, better visibility, and more timely decision-making. Those that are not risk falling behind in a tax system that will increasingly favour seamless, real-time interaction.

At Forrester Boyd, we are already helping clients prepare for this shift. Whether that means reviewing reporting systems, identifying opportunities for automation or ensuring alignment with HMRC’s new services, our goal is to support businesses in taking control of what comes next. If you would like to discuss how we can support you please do not hesitate to contact us.

The withdrawal of MTD for corporation tax should not be seen as an invitation to pause. It is an opportunity to get ahead of what is already in motion.

HMRC’s transformation roadmap is available here.