HMRC’s Free Company Tax Return Service No Longer Meets Digital Standards

HMRC has confirmed that its free online service for submitting Company Tax Returns and annual accounts will close permanently on 31 March 2026. The decision follows concerns that the ageing platform no longer meets current digital standards. Designed originally for straightforward company structures, the system lacks the functionality needed to support businesses in an increasingly digital environment.

Commercial Software Now Required for Compliance

The closure marks a significant shift in how companies must approach their statutory reporting. HMRC’s free service has, for many years, offered a basic filing option for smaller businesses. However, it is no longer considered suitable for today’s compliance environment. In its place, businesses must adopt commercial filing software that meets HMRC’s updated standards.

Modern software options offer a number of advantages, including automated error checks, integrated filing with both HMRC and Companies House and built-in alerts and reminders. These features are intended to reduce the risk of late or incorrect submissions and improve efficiency. Guidance on the closure can be found on the official GOV.UK website.

Firms already working with professional advisers, such as www.hazlewoods.co.uk/expertise/business-accountants/stroud, who are business accountants Stroud, may find the transition more straightforward, as such services often include access to compliant software and support.

Early Action Helps Reduce Risk of Non-Compliance

Companies are advised to assess their current processes and select HMRC-compatible software as soon as possible. Making the switch early will give users time to familiarise themselves with new platforms, test internal workflows and identify any gaps in record-keeping.

It is also important to note that after 31 March 2026, businesses will lose access to previously filed tax returns on the old system. HMRC recommends downloading and safely storing records from the past three years. Amending returns after this point will require using commercial software or submitting changes by post.

While the end of HMRC’s free filing service represents a significant change, it also offers a chance for businesses to modernise and strengthen their compliance processes. With the right preparation and support, companies can ensure a smooth transition and maintain reporting obligations with confidence.