Upcoming Changes to Corporation Tax and Accounts Filing: What You Need to Know

Upcoming Changes to Corporation Tax and Accounts Filing: What You Need to Know

In recent updates from both Companies House and HMRC, key changes have been announced that will affect how small businesses handle their corporation tax filings and annual accounts.


As always, we are committed to keeping you informed and ensuring that you are prepared for these changes. Rest assured, we are here to support you every step of the way.


What’s Changing?


1. HMRC’s Corporation Tax Online Filing Service Closure:


Starting from March 2026, HMRC will close its Corporation Tax online filing service.
This free online service allows businesses to file corporation tax returns and annual accounts with both HMRC and Companies House simultaneously. However, it's been deemed outdated and incompatible with modern digital standards and recent UK company law changes.


From April 2026, businesses must use commercial software for both corporation tax returns and annual accounts. This affects those currently using HMRC's free online filing service for straightforward tax affairs. No immediate action is needed, but businesses should plan to transition to third-party software before the deadline.


2. Companies House Updates:


In addition to the HMRC changes, Companies House has also announced several key changes that will affect the way businesses file their annual accounts. These updates are part of the government's broader effort to modernise company law and make it easier for businesses to comply with regulations.


Key Changes to Company Accounts Filing:


  • Digital Filing Mandate: From 2026, businesses will be required to file all annual accounts in a fully digital format. Companies House is phasing out paper-based submissions and will move to a more streamlined, online-only system.


  • New Filing Requirements: Companies House is introducing stricter rules on the format and content of accounts, aiming for greater consistency and clarity in financial reporting. Businesses will need to ensure that they meet these new requirements when filing their accounts online.


  • Increased Transparency: There will also be an increase in transparency, as Companies House will be pushing for more detailed financial disclosures, especially regarding directors' pay and company transactions.


How to Prepare for the Changes:


Start preparing now by researching commercial software options that handle both Corporation Tax filings and Companies House submissions. Look for solutions that align with the new digital standards.


Who is Affected by These Changes?


Small businesses using HMRC's free online service for Corporation Tax returns and accounts, plus all businesses submitting annual accounts, especially those filing paper documents.


When Will These Changes Take Effect?


  • HMRC: The Corporation Tax online filing service will remain available until 31 March 2026. After this date, businesses will need to use commercial software to file their corporation tax returns and accounts.


  • Companies House: While the exact timeline for all changes is still being finalised, businesses can expect to transition to digital-only filing for accounts by 2026, with gradual implementation.


What Does This Mean for Your Business?


These changes offer an opportunity to modernise your filing systems. Commercial software provides a more seamless experience, saving time and reducing errors.


The sooner you explore software options, the smoother your transition will be. We're here to help ensure your business remains compliant with these new regulations.


We Are Here to Support You


We understand that these changes may feel overwhelming, but don’t worry we’re here to guide you through every step of the process. If you’re currently using the HMRC online service or filing paper accounts with Companies House, it’s time to start planning your move to a more modern filing system.


If you have any questions or need assistance in selecting the right software for your business, please don’t hesitate to reach out. We’ll help you stay compliant and ensure that you’re ready for these changes well before the deadlines.


Get in touch today to discuss how we can help you transition smoothly to the new filing systems and maintain your business’s compliance.