Business owners are increasingly finding themselves needing to adopt new approaches to keep pace with changing administrative responsibilities.
Both HMRC and Companies House have introduced new approaches to filings that need to be managed in order for businesses to stay compliant.
The onus behind these changes is a drive to become digitally focused in order to enhance transparency and improve efficiency.
While specific policy details can sometimes be light on the ground, there are the first signs of how things may be changing in the future.
This has led many to question whether an online-only approach is imminent.
From April 2027, amendments to company tax returns will only be possible through an online-only system.
This announcement means that the 2026 tax year will be the final one in which it is possible to submit paper amendments to company tax returns.
The announcement mirrors that which is happening with self-assessment tax returns, where Making Tax Digital (MTD) for Income Tax has ensured that a digital-only approach is mandatory.
When taken together, the adjustments to two major tax filings to be online-only are a clear signal that the system is heading in a specific direction and that early preparation is advisable.
Companies House seems to be following suit with the recent adjustments to fees, featuring significant increases to paper filings.
This seems like a way to phase out a paper-based approach, but Companies House may adopt HMRC’s angle of outright banning alternatives to a digital system.
When spearheading significant overhauls to the way that filings are conducted, it is vital that both HMRC and Companies House safeguard businesses and individuals in the process.
However, a recent IT breach has raised much concern that the organisations are not ready to handle the influx of data.
For a brief time, Companies House became exposed to the point where it was possible to access the sensitive information kept about other businesses, such as directors’ home addresses, email addresses and dates of birth.
Data breaches are not the best way to build up confidence for business owners who may already be apprehensive about changing a system that they have become used to over many years.
Alongside this, the woeful uptake of MTD is a sign that many do not want to adopt a new digital system unless forced to do so.
90 per cent of those affected by MTD have not yet registered and the lack of penalties until 2027 may be a sign of why this is the case.
Depending on whether this is addressed could impact how online-only filings are managed going forward.
Ultimately, the fact remains that both HMRC and Companies House want to adopt a digital-only approach to filings that businesses and individuals will need to keep pace with.
Our team can help you keep up with your changing obligations so that you are not caught out should penalties be introduced.
Get in touch to prepare for online-only filings with HMRC and Companies House.
