Is HMRC going online-only for filings?

It is no secret that businesses are having to keep pace with a wide range of regulatory changes and updates that threaten to catch them out if they cannot stay compliant.

Both HMRC and Companies House are still working to update the way that businesses need to approach filings, but there has been a distinct lack of concrete proposals.

It is clear though that both are working towards digital-focused approaches to filings that will see traditional approaches phased out and dropped over time.

The first signs of this are already apparent with new announcements signalling that an online-only approach may be coming in the near future.

Which business filings are online-only?

From April 2027, amendments to company tax returns will only be possible through an online-only system.

The announcement means that 2026 will be the final tax year during which it is possible to submit company tax return amendments through traditional means.

With self-assessment tax returns already subject to digital-only filing through the introduction of Making Tax Digital (MTD) for Income Tax.

As two major tax systems will feature exclusively digital filing systems, it may be worth preparing any remaining traditional systems ahead of a complete abandonment of paper filings.

Companies House is less strident with changes but is also clearly indicating a desire to forgo paper filings.

The recent updates to filing fees saw online options become significantly cheaper than paper options.

It is possible that Companies House may soon entirely mandate an online-only approach and remove the possibility for paper filing entirely.

What are the challenges facing businesses with online-only filings?

Business owners may be hesitant to trust organisations with highly sensitive data and both HMRC and Companies House will need to prove that the systems are capable of handling an influx of data safely and securely.

The recent IT breach that Companies House suffered is unlikely to aid in this goal and may cause many business owners to become apprehensive about digital-only systems.

For a brief time, Companies House allowed users to access highly personal information of other businesses, including directors’ home addresses, email addresses and dates of birth.

While the modernisation of the core systems is understandable, the Government must make sure that it is seen to be proactive in protecting users from vulnerabilities, particularly if an online-only approach is enforced with penalties.

A resistance to a digital approach is notable with MTD, as 90 per cent of those affected are not yet registered for it.

It may be that they are waiting for the penalties to be enforced in 2027 before they take the new obligations seriously.

If penalties are the only way to get businesses and individuals to shift to new systems, then it is more likely that additional penalties will be implemented in the future.

As systems change to be digital-focused, we are on hand to help you understand your new obligations.

We can help you to stay compliant and adjust your systems to move away from paper filing towards an online-only approach.

To stay confident with HMRC and Companies House filings, speak to our team today.