No more free filing from 1 April 2026 – Implications for small businesses
If your business currently relies on HM Revenue & Customs’ (HMRC’s) free online tax filing service, there’s an important change on the horizon.
From 31 March 2026, HMRC and Companies House will permanently close their free joint online filing service for company accounts and Corporation Tax returns – commonly known as the CATO portal. Once it’s switched off, you won’t be able to use the service or access any previously submitted returns through it.
From 1 April 2026, all companies will need to use commercial software to file their annual accounts and Corporation Tax return.
For many one-person businesses and micro-companies that currently file for free, this represents a significant shift. With less than three months to go, here’s what you need to know – and how to prepare.
Why is the free service being withdrawn?
HMRC’s official reasons are that the current service:
- No longer meets modern digital standards;
- Doesn’t align with changes to company law or the Economic Crime and Corporate Transparency Act, which push towards tagged digital accounts and more detailed data from companies.
In practice, this move also fits with HMRC’s wider direction of encouraging businesses to use advisers and recognised software.
While this may improve accuracy, it will inevitably increase costs for small businesses. This will be particularly frustrating for affected businesses given that many inaccuracies stem from the complexity of the tax system itself!
What is changing?
From 1 April 2026:
Corporation Tax
- All companies must file their CT600 using HMRC-recognised commercial software.
Accounts to Companies House
- For now, accounts can still be filed via Companies House WebFiling, on paper, or through commercial software.
Companies House has been working towards software-only accounts filing from April 2027, although this may yet be scaled back following concerns raised by small business groups about cost and data disclosure. Watch this space.
What is certain is that the free joint filing portal will close on 31 March 2026, and Corporation Tax filing will move entirely to paid third-party software from that point.
What should you do next?
If you already use an accountant or commercial software to file your company accounts and tax returns, you’re unlikely to notice much difference.
However, if you currently file your returns yourself using the CATO portal, you should start preparing now.
- Download and securely save at least the last three years of tax returns before 31 March 2026 – you won’t be able to access them afterwards.
- Treat 31 March 2026 as a hard deadline. HMRC has provided a list of commercial software suppliers that can produce one or more of the elements required for a Company Tax return.
Need Support?
Managing company accounts and Corporation Tax can be complex and time-consuming. If you’d prefer not to deal with the transition yourself, we can prepare and file your annual accounts and company tax returns on your behalf, ensuring everything is accurate, compliant, and submitted on time using the appropriate software.
Get in touch if you need our help.
