HMRC to Close Online Tax Filing Service by 2026

Team Nomi

Mar 14, 2025
4 minutes read

As HMRC prepares to close its online accounts and company tax return service by 31 March 2026, you need to act quickly.

This change affects how you file taxes, so it’s crucial to understand the key dates and alternative filing methods to ensure a seamless transition. Your action is required to avoid disruptions.

Who will be affected by the change?

The closure of HMRC’s online accounts and tax filing service will affect several groups:

• Sole traders who used the service for Self Assessment.
  
• Limited companies that filed Corporation Tax returns online.
  
• Partnerships and trusts that relied on the online system.
  
• Accountants and agents managing clients’ tax affairs through this service. These users will need to adapt to new filing methods, such as using commercial accounting software or registering for Making Tax Digital (MTD).

Why is HMRC doing this?

HMRC is closing its outdated online accounts and tax filing service to align with modern digital standards and recent changes in UK company law, such as the Economic Crime and Corporate Transparency Act. This move aims to enhance efficiency and compliance by leveraging technology. Key reasons include:

• The service no longer meets current digital expectations.
  
• It doesn’t support new corporation tax requirements.
  
• Commercial software offers more features like improved validation and tax support.

Key Dates to Remember

• Closure Date: The HMRC online accounts and tax filing service will close on 31 March 2026.
• Transition Deadlines: Ensure you switch to new systems or register for Making Tax Digital (MTD) well before the closure. This will help you avoid any disruptions to your tax filing process. Act early to ensure a smooth transition.

What You Need to Do Now

Now is the time to act if you’re affected by HMRC’s online accounts closure. Here’s what you need to do:

• Sole Traders: You’ll need to switch to Making Tax Digital (MTD) for Income Tax Self Assessment. This means using commercial accounting software that’s MTD compliant. This software will help automate your tax returns and ensure you’re meeting the new digital requirements.
  
• Limited Companies: You’ll need to use commercial software to file your Corporation Tax returns. This software will help you manage your tax obligations efficiently and ensure compliance with HMRC’s new systems.
• Agents: If you manage clients’ tax affairs, ensure they’re aware of these changes and assist them in transitioning to the new systems. Act early to avoid any last-minute complications.

What Should Companies Do Now?

Act Now to ensure a smooth transition when HMRC closes its online accounts. Companies should:

• Review Current Systems: Assess how you currently file taxes and identify any changes needed.
  
• Choose a New Method: Decide whether to use approved third-party software or an accountant for future tax filings.
  
• Set Up New Accounts: Create accounts with your chosen provider to avoid delays.
• Test the System: Ensure everything works smoothly before the deadline to avoid penalties.

Moving to a Fully Digital Filing System

As HMRC transitions away from its online accounts and tax filing service, a key part of this change is the move towards a fully digital filing system. This shift aims to make tax filing more efficient and secure. Here are some key aspects of this transition:

• Simplified Processes: Digital systems can automate many tasks, reducing errors and making it easier to manage your taxes.
  
• Increased Security: Digital systems offer enhanced security features to protect your personal and financial data.
• Accessibility: Digital filing can be done from anywhere with an internet connection, making it more convenient for taxpayers.

This change is part of HMRC’s broader effort to modernize its services and align with the Making Tax Digital (MTD) initiative. By embracing digital solutions, taxpayers can enjoy a more streamlined and user-friendly experience.

The move to a fully digital filing system marks a significant step forward in tax management. By understanding and adapting to these changes, you can ensure a smoother transition and take advantage of the benefits that digital filing offers.

Need Help with HMRC’s Online Account Closure?

• HMRC Online Services Helpdesk: Contact for technical issues with HMRC online services at 0300 200 3600.
  
• Extra Support: Call 0300 200 3300 for additional assistance if needed.
• Visit HMRC’s Website: www.gov.uk for more information and resources.