If you’re a small business owner or company director in the UK, a major change is coming to how you file your annual accounts and Company Tax Returns. HMRC and Companies House have announced the closure of the joint filing service that allowed businesses to submit company accounts and tax returns at the same time.
Here’s what you need to know — and what steps you should take next to stay compliant.
In this blog post, we’ll explain:
🔒 What’s Changing?
As of 31st March 2026, the Company Accounts and Tax Online (CATO) service will be permanently closed. This service allowed small companies and micro-entities to file their annual accounts to Companies House and a Company Tax Return to HMRC in one simple online process.
This joint filing option was convenient for many small businesses, particularly those not using accounting software.
However, due to evolving technology and increased reliance on digital recordkeeping, HMRC is now phasing out this legacy service.
📅 Key Dates to Remember
| Milestone | Date |
|---|---|
| Last day to use the joint filing service | 31 March 2026 |
| Service officially closes | 1 April 2026 |
| Deadline to download past submissions | 31 March 2026 |
After 31 March 2026, you will no longer be able to access previously submitted returns through the joint filing service. It’s crucial to download and save copies of your past filings before this date.GOV.UK+2
❓ Why Is HMRC Closing This Service?
According to HMRC, the closure is part of their effort to:
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Modernise systems and reduce duplication
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Encourage the use of dedicated accounting software
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Prepare businesses for Making Tax Digital (MTD) and future digital reporting
The service is considered outdated and no longer aligns with the government’s long-term digital strategy for tax and business reporting.
⚠️ Who’s Affected?
This change primarily affects:
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Small companies and micro-entities that do not currently use accounting software
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Directors who rely on the free HMRC online service to file both sets of documents
Larger companies and those already using accounting platforms will not be affected, as they typically file their accounts and tax returns separately.
✅ What Should You Do Next?
If you currently use the joint filing service, it’s important to plan ahead. Here’s how:
| Step | Action |
|---|---|
| Review your filing process | Check if you’re using HMRC’s joint service now |
| Consider accounting software | Tools like Xero, QuickBooks, or FreeAgent will remain compliant |
| Speak to an accountant | A professional can handle your filings and advise on the best approach |
| Submit early if needed | If your due date is near the closure date, file in advance |
💡 Tip: If you file both returns manually without software, it may be time to transition to a digital platform or outsource to an accountant to ensure continuity and compliance.
HMRC-Approved Commercial Software Options
Here are best 3 software filing Company Tax Returns and accounts, based on usability, popularity among small businesses and accountants, compliance with UK regulations, and post-2026 readiness:
| Provider | Best For | Notable Features |
|---|
| FreeAgent | Freelancers & small businesses | MTD-ready, HMRC-recognised, user-friendly interface |
| Taxfiler (IRIS) | Accountants & small firms | Handles CT600, iXBRL tagging, detailed reporting |
| Xero | Growing SMEs | CT filing via integrations, real-time bookkeeping |
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📝 Action Steps Before the Closure
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Download Past Submissions: Ensure you save at least the last three years of your filed returns. This is important for future reference, especially if you need to consult with an accountant or if HMRC conducts a compliance check.
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Transition to Commercial Software: From 1 April 2026, you will need to use commercial software to file your Company Tax Returns with HMRC. Start exploring suitable software options now to ensure a smooth transition.
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Consult with Professionals: If you’re unsure about the transition or need assistance, consider consulting with a professional accountant or tax advisor.
For more detailed information, please refer to the official HMRC guidance: 🔗 Closure of the service to file your company accounts and tax return
If you need further assistance or have more questions, 🔗 feel free to get in touch with our team!
📌 Final Thoughts
The closure of HMRC’s joint filing service is a significant shift, especially for small companies that rely on simple, direct filing. But it’s also an opportunity to streamline your financial processes and move toward better digital compliance.
By acting early, you’ll avoid last-minute surprises — and potentially make your year-end admin a lot easier in the long run.
🔗 Read the full HMRC announcement here:
Closure of the service to file your company accounts and tax return