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Tax & Compliance7 min read

HMRC's Free Filing Service Has Closed: Your Options Compared

For years, small company directors could file their annual accounts and Corporation Tax return through a free government service. That service closed on 31 March 2026. This guide explains what has changed and what your options are now.

What actually changed?

HMRC and Companies House jointly operated a free online service that allowed qualifying small companies to file their company accounts, Corporation Tax return, and supporting information through a single government system.

Since April 2026, HMRC requires Corporation Tax returns to be submitted using commercial software. The free government service is gone and there is no plan to replace it.

The good news is that you do not necessarily need an accountant. You do, however, need software.

Who is affected?

The closure affects an estimated 200,000 to 400,000 UK limited companies that previously filed directly through GOV.UK. This includes:

The four main options

Option 1: Hire an accountant

The traditional route. An accountant prepares your annual accounts, Corporation Tax calculations, CT600 return, and Companies House filings on your behalf.

Best for

  • Growing or complex businesses
  • Multiple shareholders
  • Specialist tax relief claims

Drawbacks

  • Higher annual cost (typically £300 to £800+)
  • Often unnecessary for straightforward companies
  • Can involve lengthy onboarding

Option 2: Bookkeeping software with filing functionality

Many accounting platforms such as Xero, QuickBooks, and FreeAgent now include statutory filing tools alongside their day-to-day bookkeeping features.

Best for

  • Businesses using bookkeeping software daily
  • Companies wanting accounts and filing in one place

Drawbacks

  • Expensive if filing is all you need (£144 to £228 per year)
  • Designed around bookkeeping, not statutory filing
  • Learning curve for occasional users

Option 3: Specialist filing software

Most suitable for self-filers

Some software is built specifically for statutory accounts and Corporation Tax filing, without the overhead of a full bookkeeping platform. These products let directors prepare micro-entity or small company accounts and a CT600 return without needing an accounting background.

Best for

  • Micro-entities and small owner-managed companies
  • Directors who prefer to self-file
  • Simpler workflows and lower cost

Drawbacks

  • Less useful for day-to-day bookkeeping
  • May not support complex tax scenarios

Option 4: Hybrid approach

Some directors maintain their own bookkeeping throughout the year and then use either filing software or an accountant for year-end compliance. This can reduce costs while still providing professional support when it is genuinely needed.

Best for

  • Directors comfortable with their own numbers
  • Businesses wanting occasional professional input

Drawbacks

  • Requires more organisation
  • Partial self-filing still requires software

Comparison at a glance

OptionCostSelf-filingBest for
AccountantHigherNoComplex companies
Bookkeeping softwareMediumYesBusinesses already keeping digital records
Specialist filing softwareLowerYesMicro-entities and small companies
Hybrid approachMediumPartlyBusinesses wanting occasional advice

Which option is right for you?

You may not need an accountant if:

  • You are the only director
  • You have straightforward income and expenses
  • You qualify as a micro-entity
  • You have no unusual tax adjustments
  • You are comfortable reviewing your own figures

Consider an accountant if:

  • Your company owns investments
  • You have multiple directors or shareholders
  • You are claiming specialist tax reliefs
  • You regularly make complex tax adjustments
  • You have overseas activities

Questions to ask before choosing software

Does it support CT600 filing?

Not all accounting software includes Corporation Tax filing. Some bookkeeping platforms handle invoices and expenses well but cannot submit a CT600 directly to HMRC. Check before committing.

Does it generate iXBRL accounts?

HMRC requires accounts to be submitted in iXBRL format. PDFs are not accepted. Your software must create this format automatically. Generating iXBRL separately can add cost and complexity.

Is it designed for directors or accountants?

Many products are aimed at accounting firms managing multiple clients. If you intend to file yourself, look for software built around clarity and guided workflows rather than professional-grade complexity.

Can it file to both HMRC and Companies House?

Filing accounts to Companies House and submitting a Corporation Tax return to HMRC are two separate obligations. Software that handles both in a single workflow saves time and reduces the risk of inconsistencies between the two submissions.

What does it actually cost?

Some software advertises a low headline price but charges extra for iXBRL accounts, Companies House filing, or submission itself. Look at the all-in cost for what you actually need, not the starting price.

Looking ahead to 2028

Choosing software is becoming more important, not less. From April 2028, Companies House plans to require all companies to file annual accounts using commercial software. Paper filing and web-based filing routes for accounts will be removed at that point.

For many businesses, moving to software now avoids a second, more pressured transition later.

Need a straightforward way to file?

Most small companies do not need a full accounting platform. They need something that works, costs a reasonable amount, and does not require an accounting qualification to navigate.

Accountable Filing is built for micro-entities and small owner-managed companies. It handles your accounts, CT600, iXBRL generation, and submission to both HMRC and Companies House in one place. No bookkeeping module you will never use. No annual subscription to a platform designed for accountants.

See how Accountable Filing works

Frequently asked questions

Is there still a free HMRC filing service?

No. The free online company tax filing service closed on 31 March 2026. There is no replacement free tool.

Can I file a CT600 directly on GOV.UK?

No. HMRC now requires commercial software for all Corporation Tax submissions. You can no longer file through the GOV.UK website.

Do I legally need an accountant?

No. Directors can still prepare and file their own accounts and Corporation Tax returns provided they use compatible software.

What is the cheapest option for a simple company?

For micro-entities with straightforward accounts, specialist filing software is typically the most affordable route. It costs considerably less than a full accounting platform or accountant fees.

Do I need to tell HMRC I am switching to new software?

No. You do not need to notify HMRC or Companies House when moving to commercial software. Your Government Gateway account remains active for other services.

References

  1. 1HMRC, "Filing company accounts and tax returns if you previously used the HMRC online service".
  2. 2Companies House, "The online accounts and Company Tax Return service is closing".
  3. 3Association of Taxation Technicians, "Online company accounts and tax filing service to close".
  4. 4Companies House, "Changes to accounts filing from April 2028".