HMRC’s Free Company Tax Return Service Has Closed, What Directors Need to Do
Overview
HMRC’s free ‘File your accounts and Company Tax Return’ online service closed on 31st March 2026. Companies that previously used it now normally need compatible commercial software or an accountant to submit their Company Tax Return.
Separately, fixed late-filing penalties doubled for Company Tax Returns with a filing date on or after 1st April 2026. The standard penalty starts at £200 and increases by another £200 if the return is still outstanding after three months.
The closure did not remove the obligation to file accounts with Companies House. Directors should confirm their filing arrangements and track the accounts, tax-return and tax-payment deadlines separately.
Detailed Content
1. What changed on 31st March 2026?
The free joint service for filing company accounts and Company Tax Returns closed. From 1st April 2026, companies should normally use commercial software to submit their returns to HMRC, or appoint an accountant who uses suitable software.
This is particularly important for companies that previously used the free service. Companies already filing through commercial software or an accountant may not need to change their arrangements, but should confirm what is included.
The closure does not mean that all HMRC online account services have closed. It also does not mean that every limited company must file a Company Tax Return every year regardless of its circumstances. A company must file if HMRC issues a notice to deliver a return, even if it made a loss or has no Corporation Tax to pay. Dormant companies may not need to file where HMRC has confirmed that a return is not required.
Paper Company Tax Returns are only permitted in limited circumstances, including filing in Welsh or having a reasonable excuse accepted under HMRC’s rules. They are not a general alternative to buying software.
2. Track three separate deadlines
For a typical private limited company:
Annual accounts to Companies House- Nine months after the financial year end
Corporation Tax payment- Nine months and one day after the Corporation Tax accounting period ends
Company Tax Return to HMRC- Twelve months after the Corporation Tax accounting period ends
First accounts and unusual accounting periods can have different arrangements. A Corporation Tax accounting period cannot exceed twelve months, so a longer set of accounts may require two tax returns. Larger companies may need to pay Corporation Tax by instalments.
The accounts submitted as part of the HMRC return do not replace the separate Companies House filing. Companies House has its own late-filing penalties.
3. Higher Company Tax Return late-filing penalties
For returns with a filing date on or after 1st April 2026, the standard penalties are:
One day late - (£200)
Still outstanding after three months- (Another £200, taking the fixed total to £400)
Six months late- (A penalty of 10% of unpaid tax, and HMRC may issue an estimated tax determination)
Twelve months late - (Another 10% of unpaid tax)
If returns are late three times in a row, the £200 fixed penalties increase to £1,000 each, giving a fixed total of £2,000 after three months.
Fixed penalties can apply even where there is no Corporation Tax to pay. Interest on late tax payments is separate. If you believe you have a reasonable excuse, check the appeal requirements and retain supporting evidence. HMRC’s guidance requires the return to be filed before appealing the late-filing penalty.
4. What your filing software must do
A Company Tax Return is more than the CT600 form alone. Check that your filing arrangements cover:
The CT600 and any relevant supplementary pages.
The Corporation Tax computation.
The company accounts required with the return.
Electronic submission to HMRC and confirmation of acceptance.
For most companies, the accounts and tax computations must be submitted in iXBRL format. This combines a readable document with machine-readable tags. There are limited exceptions, so it is more accurate to say ‘normally required’ than ‘required for every account filed with HMRC’.
A plain PDF or spreadsheet is not normally sufficient for a company’s required iXBRL attachments. The software must support the company’s actual circumstances, not simply offer bookkeeping or annual reporting features.
Use HMRC’s recognised software list as a starting point, then confirm the exact product, subscription and capabilities with the supplier. A familiar bookkeeping brand does not automatically mean your subscription includes Corporation Tax filing or Companies House accounts filing.
5. What directors should do now
Confirm who is preparing the accounts, calculating the tax and submitting each filing. Agree when records must be supplied and leave time for review, approval and corrections.
Using an accountant does not transfer the company’s legal responsibilities. Directors should review and approve the information, keep evidence of successful submissions and ensure the tax is paid using the correct reference.
Step-by-Step Procedure
Check the accounting periods, HMRC notice to file and next deadlines. Include Companies House accounts, Corporation Tax payment and the Company Tax Return.
Confirm whether your existing filing arrangements remain suitable following the closure.
If filing yourself, check the exact software supports the CT600, supplementary pages, accounts and tax computation in the required formats.
If using an accountant, agree the scope of work, authorisation, records required and submission timetable in writing.
Reconcile the bookkeeping and review the accounts and tax computation before approving submission.
Pay Corporation Tax by the applicable deadline, allowing time for the payment to reach HMRC.
Submit each required filing, check that it was accepted and retain receipts and payment evidence. Resolve any rejection promptly.
Frequently Asked Questions and Answers
What exactly closed?
HMRC’s free ‘File your accounts and Company Tax Return’ service closed on 31st March 2026. Other HMRC online account functions and separate Companies House filing services were not all closed by this change.
Does every limited company need a Company Tax Return?
A return is required if HMRC issues a notice to deliver one, even if no tax is payable. Dormant companies may not need a return where HMRC has confirmed this. Do not ignore a filing notice because the company is dormant.
Can I use my existing bookkeeping software?
Only if the relevant product and subscription support the complete filing you need. Check the exact capabilities rather than relying on the brand name. You may need separate tax software or an accountant.
When do I file and pay?
The normal Company Tax Return deadline is twelve months after the Corporation Tax accounting period ends. Payment is normally due nine months and one day after it ends. Companies House annual accounts normally have a separate nine-month deadline, with different rules for first accounts.
What are the new penalties?
For returns with a filing date on or after 1st April 2026, the standard fixed penalty is £200, plus another £200 after three months. Repeated late filing increases these amounts. Further tax-geared penalties can arise after six and twelve months.
Are iXBRL accounts a new requirement?
No. Most companies have been required to submit accounts and tax computations in iXBRL with their online returns for many years. The service closure changes the filing route, not the basic requirement.
How can 360 Accounts help?
360 Accounts & Bookkeeping can help prepare annual accounts, calculate Corporation Tax and submit the Company Tax Return. We can also help review your bookkeeping and clarify the separate filing and payment deadlines. Contact us to agree the support your company needs.