Will HMRC go online-only in the future?
Fresh off a wave of regulatory changes designed to improve transparency and efficiency with filings, business owners are having to take stock of new administrative responsibilities.
The changes to Companies House and HMRC filings are not finished yet and many have been nervous due to the lack of concrete policies announced.
Both are pushing for a digital focus in how businesses engage with filings, but the exact way in which this is achieved is not fully clear.
The first glimmers are starting to appear and it could be signalling a radical shift in how Companies House and HMRC operate.
Is an online-only model coming in the near future for all business filings?
Which business filings are online-only?
From April 2027, amendments to company tax returns will only be possible through an online-only system.
This means that the 2026 tax year will be the final year when it is permissible to submit paper amendments to company tax returns.
This is in a similar style to the way that Making Tax Digital (MTD) for Income Tax is set to revolutionise the way that self-assessment tax returns are filed by making them online-only as well.
With two major tax systems now shifting over to being exclusively digital, it may be time for businesses to make adjustments to how they handle their records.
Companies House has also signalled a desire to move towards a digital-only approach, although it has not yet shut down traditional pathways.
Instead, the recent changes to fees saw paper filings subject to an increase in cost, with the online option being significantly cheaper.
If Companies House takes inspiration from HMRC’s approach to tax filings, it may simply remove the option for paper filings at a certain point.
What are the challenges facing businesses with online-only filings?
At a time when there is such a shift towards digital-only filings, businesses need to know that their data is secure.
The recent IT security breach that impacted Companies House may shake the confidence of business owners.
For a time, it was possible for anyone to access other companies’ details by pressing the back key on their company’s dashboard.
Through this, it was possible to access highly personal information, including directors’ home addresses, email addresses and dates of birth.
For a Government that is keen to modernise, the breach does little to build confidence and may cause hesitation for many businesses to adopt new measures unless harsh penalties force them to do so.
MTD uptake is only around 10 per cent despite it being a mandatory change.
It is currently not clear whether the remaining 90 per cent of people who need to register by April will do so or if they will wait for penalties to be introduced in 2027.
Depending on how well the carrot and stick approach to MTD goes may indicate how the implementation of the online-only company tax return filings is implemented in 2027.
Our team are on hand to help you understand the changing obligations that face you and to approach them with confidence.
We can help you stay compliant and up-to-date so that you do not face any penalties.
Speak to our team today to stay confident with HMRC and Companies House filings.
