How Rothstone Accountants Prepare Businesses for the Next Wave of HMRC Digitalisation
A Digital Deadline That’s Hard to Ignore
For years, HMRC has been pushing businesses towards digitalisation under its Making Tax Digital (MTD) programme. First came VAT, then income tax self-assessment (for sole traders/landlords), and now—looming on the horizon—is Making Tax Digital for Corporation Tax (MTD for CT).
While the full rollout is still being phased in, it’s no longer a question of if—it’s a question of when. Companies will soon need to maintain digital records and submit corporation tax data via MTD-compatible software.
For SMEs already grappling with compliance burdens, payroll pressures, and cashflow issues, this may feel like one change too many. But with the right preparation—and the right accountant—MTD for CT can become more than just a compliance headache. At Rothstone Accountants, we see it as an opportunity for better insight, automation, and smarter tax planning.
What Exactly Is MTD for Corporation Tax?
The basics:
-
Businesses will need to keep digital records of all income, expenses, and adjustments relevant to corporation tax.
-
They’ll submit quarterly digital updates to HMRC (similar to MTD for VAT).
-
A final digital annual CT return will replace today’s CT600 process.
📊 Table 1: Comparing Old vs New Corporation Tax Filing
| Step | Current System | MTD for CT (Future) |
|---|---|---|
| Record keeping | Manual spreadsheets or accounting software | Must be fully digital, no manual “bridging” allowed |
| Reporting | Annual CT600 | Quarterly digital updates + annual return |
| Submission method | HMRC portal or software | MTD-compliant software only |
| Deadlines | 12 months after year-end | Quarterly + year-end digital return |
Why it matters:
-
More admin: Quarterly reporting means more frequent submissions.
-
Less margin for error: HMRC will have real-time visibility into company finances.
-
Higher risk of penalties: Late or inaccurate filings will trigger fines.
How Will This Impact Businesses?
-
Compliance Burden Increases
Instead of one annual submission, companies will have to engage in continuous reporting. Small businesses used to handing HMRC their books once a year will find this especially disruptive. -
Cashflow Transparency for HMRC
Quarterly updates mean HMRC sees your profitability in near real-time. Businesses may face fewer surprises during investigations—but also less leeway for “fixing” issues at year-end. -
Technology Investment
Companies will need to invest in MTD-compliant software (QuickBooks, Xero, Sage, etc.). For some, that’s an added cost; for others, it’s a welcome upgrade from outdated spreadsheets. -
Opportunities for Efficiency
The flipside: digital records improve visibility. Business owners can spot trends earlier—like falling margins or missed expenses. With Rothstone guiding the process, MTD for CT becomes a tool for strategy, not stress.
📌 Example:
A tech start-up we advise used to submit annual accounts through a part-time bookkeeper. Under MTD prep, we migrated them to Xero, automated bank feeds, and built quarterly tax forecasts. Instead of dreading HMRC, they now use their data to monitor growth and attract investors.
The Accountant’s Role
At Rothstone, we don’t just help clients survive the shift to MTD for CT—we help them thrive.
1. Software Migration & Setup
-
We assess your current systems.
-
We recommend MTD-compliant solutions.
-
We handle the migration of historic data, so nothing is lost.
2. Training & Support
Digital tools can feel daunting. We train business owners and staff, so they can log invoices, track expenses, and generate reports with confidence.
3. Quarterly Reporting Service
Not every SME has time to prepare quarterly CT updates. Rothstone takes over, reconciling accounts, making adjustments, and submitting updates on your behalf.
4. Tax Forecasting & Planning
With quarterly updates, we can forecast your corporation tax bill months in advance. That means no nasty surprises, and the chance to set money aside gradually.
5. Compliance & Peace of Mind
We keep an eye on HMRC deadlines, rule changes, and penalties, so you don’t have to.
✔️ Checklist: Is Your Business Ready for MTD for CT?
Are your accounts already digital?
Do you use HMRC-approved software?
Do you have processes for quarterly reporting?
Have you tested digital record-keeping (no spreadsheets)?
Do you have an accountant prepared to manage submissions?
Practical Steps Businesses Should Take Now
Step 1 – Audit Your Current Processes
-
Still relying on Excel? You’ll need to upgrade.
-
Using outdated software? Check HMRC’s list of compatible products.
Step 2 – Clean Up Your Records
-
Invoices, expenses, and payroll data must be reconciled.
-
Old habits (like “fixing it at year-end”) won’t work anymore.
Step 3 – Consider Outsourcing
For smaller firms, outsourcing quarterly updates to accountants like Rothstone is often cheaper and safer than building in-house expertise.
Step 4 – Use the Data to Your Advantage
Quarterly reporting isn’t just for HMRC. Use it to track KPIs like profit margins, debtor days, or tax liabilities.
📊 Table 2: How Rothstone Turns Quarterly Reports into Insights
| Area | HMRC’s View | Rothstone’s Added Value |
|---|---|---|
| Revenue | Compliance check | Identify seasonal trends |
| Expenses | Deduction validation | Spot cost-saving opportunities |
| Profits | Tax liability basis | Assess dividend planning |
| Cashflow | Not visible to HMRC | Model investment capacity |
How Rothstone Helps Clients Transition
We’ve already helped multiple clients transition successfully to digital-first compliance. Our support includes:
-
Migration workshops – We set up your systems, staff logins, and HMRC integration.
-
Full-service quarterly submissions – We handle reporting so you can focus on running your business.
-
Custom dashboards – We build reports that let you see future tax bills at a glance.
-
Advisory reviews – Quarterly check-ins to spot risks, identify reliefs, and optimise tax planning.
📌 Case Study: Construction SME
A construction company we work with used manual spreadsheets for years. With MTD approaching, we migrated them to Sage, automated CIS deductions, and set up quarterly reporting. The director now knows his expected corporation tax bill six months in advance and can manage cash reserves accordingly.
Don’t Wait for the Deadline
MTD for Corporation Tax may not be fully live yet, but waiting until the last minute will cause unnecessary stress. By preparing now—choosing software, cleaning records, and engaging Rothstone—businesses can turn HMRC compliance into a powerful financial management tool.
At Rothstone Accountants, we don’t just file your tax—we future-proof your business for a digital world.
📞 Ready to prepare for MTD for CT? Get in touch with Rothstone today.
