The Future of Corporation Tax Filing in the UK
UK corporation tax filing is undergoing its biggest transformation in decades. Here's what's changing and why it matters for your company.
The Big Picture
The UK government is moving away from providing free filing services and towards mandatory software-only filing. This is part of a broader push for:
- Digital transformation of tax administration
- Improved data quality through software validation
- Greater transparency on company registers
- Reduced fraud in the business ecosystem
Key Milestones
| Date | Change |
|---|---|
| 31 March 2026 | HMRC's free CT600 service closes |
| 1 April 2026 | Software-only CT600 filing |
| 1 April 2027 | Software-only accounts filing |
| Future | Likely further digital requirements |
Why Is This Happening?
The Economic Crime and Corporate Transparency Act 2023
This legislation requires:
- Enhanced verification of company information
- Improved accuracy of financial data
- Greater corporate transparency
- Reduced opportunities for fraud
Technology Evolution
Government systems built in the 2000s can't support:
- Modern validation requirements
- Real-time data checking
- Advanced security standards
- New reporting formats
Policy Direction
The government believes commercial software:
- Provides better user experience
- Offers more features
- Enables innovation
- Reduces public sector costs
What It Means for Companies
Short-Term (2025-2027)
- Switch to commercial software
- Download historical filings
- Adapt to new disclosure requirements
- Learn new processes
Medium-Term (2027-2030)
- All filing through software
- More detailed reporting
- Potential further requirements
- Integration with accounting systems
Long-Term (Beyond 2030)
- Fully digital tax ecosystem
- Real-time or near-real-time reporting possible
- Automated compliance checking
- AI-assisted filing likely
Opportunities
For Small Companies
- Modern software often easier than old government forms
- Better error prevention
- Free options still available
- Combined HMRC/CH filing in one place
For Accountants
- Efficiency through software
- Value-added services (advice, planning)
- Client migration opportunities
- Practice modernisation
Challenges
For Small Companies
- Learning new software
- Potential costs (though free options exist)
- More disclosure required
- Transition period adjustment
For Very Small/Dormant Companies
- Even simple companies need software
- No more paper filing
- Change can feel burdensome
Preparing for the Future
Immediate Actions
- Download HMRC filing history
- Choose software now
- Test before deadlines
- Understand new disclosure
Ongoing Approach
- Stay informed about changes
- Keep software updated
- Build good record-keeping habits
- Consider professional advice for complex situations
The Role of Free Software
Free options like TinyTax ensure that:
- Small companies aren't priced out
- The transition doesn't increase costs for everyone
- Basic filing remains accessible
- Competition keeps paid software reasonable
Summary
The future of UK corporation tax filing is:
- Software-only — no more government free services
- More digital — enhanced data and validation
- More transparent — increased disclosure
- Still accessible — free options exist
TinyTax offers free CT600 and accounts filing. Get ready for the future →