Closure of HMRC’s joint online filing service

Whilst the tax administration for sole traders with low levels of income is set to be eased, the news is perhaps less cheerful for those who run companies with low levels of profits. 

HMRC has announced the closure of its free online service, known as Company Account and Tax Online (CATO), stating that it no longer meets modern digital standards or recent UK company law requirements. The service has been available to unrepresented companies with simple tax affairs for filing company accounts and tax returns since 2016. That might include some charities and landlords who hold properties in a company.

CATO will be unavailable after 31 March 2026. Returns submitted using the service prior to this date will also no longer be available for amendment through this service once it is closed.

Before the service closes, affected businesses need to ensure they have downloaded and saved at least the last three years’ filed returns as they will be unavailable after the closure of the service.

From 1 April 2026 onwards, companies will need to use commercial software to file their annual accounts and tax returns with HMRC. It is important that they start preparing now to ensure they find suitable software and, if relevant, seek advice that is appropriate to their ongoing filing obligations.