If you’re a small business with straightforward accounts, you’ve likely been using HM Revenue & Customs’ (HMRC) Corporation Tax online filing service to manage your tax obligations. This free service has been a convenient way to file corporation tax returns and company accounts while ensuring compliance with regulatory requirements.
However, HMRC has recently announced that this service will close from March 2026, leaving many small business owners wondering what alternatives they’ll need to explore. Let’s dive into what this means for your business and how you can prepare for this upcoming change.
What is the Corporation Tax Online Filing Service?
The free HMRC online service has been a valuable tool for unrepresented companies with straightforward tax affairs. Currently, it enables businesses to:
- Submit Company Tax Returns directly to HMRC
- Send accounts and computations to HMRC in the required iXBRL format
- File accounts with Companies House
- Simultaneously submit Company Tax Returns to HMRC and accounts to Companies House
This streamlined service has simplified compliance requirements for many small businesses since its introduction in 2011.
Why is HMRC Closing the Service?
HMRC has determined that the online service is no longer fit for purpose. The system, which was launched over a decade ago, doesn’t meet modern digital standards or accommodate recent changes to UK company law.
The tax authority believes that small businesses currently using the free online service will benefit from investing in third-party software that aligns better with current digital standards and provides enhanced functionality.
Timeline for the Closure
The Corporation Tax online filing service will officially close on 31 March 2026.
Until this date, you can continue to use the online service to:
- File and amend your Company Tax Return with HMRC
- Submit your accounts to Companies House
However, from 1 April 2026 onwards, all businesses will need to use commercial software to file annual accounts and Company Tax returns with HMRC.
Preparing for the Transition
While the March 2026 deadline may seem distant, it’s advisable to begin exploring alternatives sooner rather than later. Here are some steps to consider:
Research Commercial Software Options
HMRC provides a list of approved commercial software suppliers for corporation tax filing. Take time to research these options to find one that suits your business’s size, complexity, and budget.
Consider Integration with Existing Systems
When selecting new software, consider how it will integrate with your existing accounting systems. A solution that works seamlessly with your current processes will minimise disruption and training requirements.
Plan for Implementation and Training
Allow sufficient time for implementing new software and training staff. Rushing this process close to the deadline could lead to errors in your tax filings or unnecessary stress.
Consult with Accounting Professionals
Speaking with accounting professionals who are familiar with various software options can provide valuable insights. They can recommend solutions based on their experience with businesses similar to yours.
How We Can Help
As experienced accountants working with businesses of all sizes, we can assist you in navigating this transition smoothly. Our services include:
- Evaluating your current tax filing processes
- Recommending appropriate software solutions based on your specific needs
- Supporting implementation and training
- Ensuring your accounting and filing processes are robust and compliant before the March 2026 deadline
While there’s no immediate pressure to switch to a new system, starting the process now will ensure a smooth transition and help you avoid last-minute complications.
FAQ: HMRC Corporation Tax Online Filing Service Closure
When exactly will the HMRC Corporation Tax online filing service close?
The service will close on 31 March 2026. After this date, businesses will need to use commercial software to file their corporation tax returns and company accounts.
Why has HMRC decided to close this free service?
HMRC states that the system, introduced in 2011, no longer meets modern digital standards and cannot accommodate recent changes to UK company law. The tax authority believes commercial software will provide better functionality and compliance with current digital requirements.
Will HMRC provide a replacement free service?
No, HMRC has not announced plans to replace this with another free service. Businesses will need to transition to commercial software solutions.
How much will commercial filing software cost?
Costs vary widely depending on the software provider, features included, and your business size. Basic packages can start from around £50 per year, while more comprehensive solutions may cost several hundred pounds annually. Many providers offer tiered pricing based on business needs.
Can I still file paper returns instead of using commercial software?
Paper filing for corporation tax returns is generally not accepted except in very limited circumstances where digital exclusion applies. Most businesses will need to use digital methods for filing after the service closes.
Should I wait until 2026 to change my filing method?
While you can continue using the HMRC service until March 2026, we recommend researching and implementing alternative solutions well before the deadline to ensure a smooth transition and avoid any last-minute complications.
References and Further Reading
- HMRC Guidance: Corporation Tax – Use HMRC’s Free Filing Software
- HMRC Guidance: Closure of the Service to File Your Company Accounts and Tax Return
- Corporation Tax Commercial Software Suppliers
- Companies House Filing Requirements
- Institute of Chartered Accountants in England and Wales (ICAEW) Digital Tax Resources