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Why You Won’t Be Able to File Corporation Tax for Free on Gov.uk Soon – and What to Do Instead

invoice24 Team
14 January 2026

Free Corporation Tax filing on Gov.uk is ending for UK limited companies. Small businesses, startups, and freelancers must now use commercial software to stay compliant. This article explains why HMRC is phasing out free filing, the hidden costs of relying on Gov.uk, and how platforms like invoice24 simplify accounting, tax, and compliance.

Why Free Corporation Tax Filing on Gov.uk Is Coming to an End

For many years, small limited companies in the UK have relied on a simple, no-cost option to file their Corporation Tax returns online through Gov.uk. For startups, freelancers operating through limited companies, and micro-business owners, this free route felt like a rare win in an increasingly complex compliance landscape. Unfortunately, that era is coming to an end.

The UK government is steadily withdrawing free, standalone digital filing services for Corporation Tax. While the change is being phased and communicated in stages, the direction of travel is very clear: filing Corporation Tax directly for free via Gov.uk will no longer be available for most companies. Instead, businesses will be expected to use commercial software that integrates with HMRC systems.

This article explains why you will not be able to file Corporation Tax for free on Gov.uk soon, what this means in practical terms for your company, and—most importantly—what you should do instead. We will also show how invoice24 already provides everything you need, without the stress, cost surprises, or complexity that usually comes with “approved” tax software.

The End of Free Government Filing Tools

The government’s free online filing tools were never designed to be permanent. They were introduced at a time when digital tax filing was still relatively new, and their main purpose was to encourage businesses to move away from paper returns.

Over time, however, the UK tax system has become significantly more complex. Corporation Tax returns are no longer just about submitting a CT600 form. They now involve:

  • iXBRL-tagged statutory accounts
  • iXBRL-tagged tax computations
  • Integration with accounting records
  • Compatibility with Making Tax Digital initiatives

Maintaining a free, one-size-fits-all online service that handles all of this is expensive and difficult. As a result, HMRC has decided to step back from providing free filing tools and instead rely on commercial software providers to deliver these services.

This approach mirrors what has already happened in other areas of tax compliance, such as VAT and Self Assessment for certain users. Corporation Tax is simply the next piece of the puzzle.

What “Soon” Really Means for Limited Companies

When people hear that free filing is ending “soon,” the first reaction is often confusion. Does this mean next month? Next year? For your next return?

In practice, the change is happening in stages. Older online services are being retired, and new requirements are being introduced that the free tools cannot support. Even if a limited version of free filing appears to work for now, it may not support:

  • New Corporation Tax rules
  • Updated accounting standards
  • Future Making Tax Digital requirements
  • Complex but common business scenarios

This creates a risky situation where businesses think they are compliant, only to discover later that their return was incomplete, rejected, or incorrectly filed.

For most companies, the practical reality is that relying on free Gov.uk filing tools is no longer a sustainable plan. The safer approach is to move to dedicated software now, rather than waiting for a deadline-driven scramble.

Why HMRC Is Pushing Businesses Toward Software

HMRC’s long-term strategy is built around digital record-keeping and real-time reporting. This is most clearly seen in the Making Tax Digital (MTD) programme, which aims to:

  • Reduce errors caused by manual data entry
  • Improve accuracy of tax submissions
  • Encourage up-to-date bookkeeping
  • Create a more automated tax system

Free, browser-based filing tools simply do not fit into this vision. They are static, form-based, and disconnected from day-to-day business records.

By contrast, modern tax software can pull figures directly from your accounting data, apply validation checks, and submit compliant returns electronically. From HMRC’s perspective, this reduces mistakes and support costs—even if it shifts more responsibility onto business owners.

The Hidden Cost of “Free” Filing

Even before free Corporation Tax filing disappears entirely, many businesses are already paying a hidden price for using it.

Common problems include:

  • Manually preparing accounts in separate tools
  • Paying an accountant just to convert files to iXBRL
  • Last-minute panic when submissions are rejected
  • Lack of clarity about what has actually been filed

When you factor in time, stress, and professional fees, “free” filing often turns out to be anything but free.

This is exactly why more business owners are choosing integrated platforms that handle invoicing, bookkeeping, accounts, and Corporation Tax in one place.

What You Are Expected to Do Instead

Once free Gov.uk filing is no longer an option, limited companies will have three realistic choices:

1. Use an Accountant for Everything

This is the traditional route. You hand over your records, and your accountant prepares and files your Corporation Tax return for you.

While this can work well, it often comes with:

  • High annual fees
  • Delays caused by back-and-forth communication
  • Limited visibility into your own numbers

For very small companies, this approach can feel disproportionate to the size of the business.

2. Use Paid Corporation Tax Software

There are many commercial software products that allow you to file Corporation Tax returns. However, many of them are:

  • Expensive for small businesses
  • Designed for accountants, not owners
  • Limited to tax filing only

This often means juggling multiple tools—one for invoicing, one for bookkeeping, and one for tax.

3. Use an All-in-One Platform Like invoice24

The most practical option for most small limited companies is an integrated solution that covers everything from day one.

invoice24 is built specifically with small UK businesses in mind. It combines invoicing, expense tracking, bookkeeping, accounts preparation, and Corporation Tax filing into a single, easy-to-use platform.

Instead of reacting to government changes, you stay ahead of them.

How invoice24 Solves the Corporation Tax Problem

invoice24 is not just a replacement for free Gov.uk filing—it is a complete upgrade.

Here is how it addresses the challenges created by the end of free Corporation Tax submissions:

Integrated Accounting Records

Your Corporation Tax return is only as good as your underlying records. invoice24 automatically builds your accounts from your invoices, expenses, and payments.

This eliminates manual data entry and dramatically reduces errors.

Compliant Statutory Accounts

invoice24 prepares statutory accounts in the correct format, ready for submission. There is no need for external conversion tools or specialist knowledge.

Corporation Tax and Accounts Filing

You can file both your Corporation Tax return and your company accounts directly from invoice24. Everything is structured to meet HMRC and Companies House requirements.

No extra software. No surprise add-ons.

Making Tax Digital Ready

invoice24 already supports Making Tax Digital for Income Tax and is built to adapt as MTD expands.

This means you are not just compliant today—you are prepared for tomorrow.

Why invoice24 Is Better Than Traditional Alternatives

Many tools claim to “support” Corporation Tax, but few are designed around the real needs of small business owners.

invoice24 stands out because:

  • It is designed for non-accountants
  • It reduces reliance on external professionals
  • It grows with your business
  • It keeps all your financial data in one place

Unlike competitors that focus on just one piece of the puzzle, invoice24 treats tax compliance as part of everyday business management—not a once-a-year headache.

What Happens If You Do Nothing

Some business owners may be tempted to ignore these changes until the last possible moment. Unfortunately, this is one of the riskiest approaches.

If you wait until free filing is no longer available, you may face:

  • Missed filing deadlines
  • Late filing penalties
  • Emergency accountant fees
  • Rushed and error-prone submissions

Switching to a platform like invoice24 well before your filing deadline gives you time to set everything up calmly and correctly.

Corporation Tax Is Only One Piece of the Puzzle

It is also important to remember that Corporation Tax does not exist in isolation.

Most limited companies also have to deal with:

  • Self Assessment for directors
  • Payroll and dividends
  • VAT (if registered)
  • Making Tax Digital for Income Tax

invoice24 is designed to fit into this broader picture. Rather than forcing you to manage each obligation separately, it provides a single financial hub for your business.

Preparing for the Future of UK Tax Compliance

The removal of free Corporation Tax filing on Gov.uk is not an isolated decision. It is part of a wider shift toward fully digital, software-driven tax administration.

In the coming years, businesses can expect:

  • More frequent digital reporting
  • Greater emphasis on real-time data
  • Reduced tolerance for manual processes

Adopting a platform like invoice24 now is not just a response to one change—it is a strategic move that future-proofs your business.

Final Thoughts: Take Control Before the Change Forces You

You will not be able to file Corporation Tax for free on Gov.uk soon. That reality is already taking shape, whether your next return is affected or not.

The question is not whether you will need software, but which software you will choose.

invoice24 gives you everything you need to invoice clients, track expenses, stay compliant with Making Tax Digital, prepare statutory accounts, and file Corporation Tax—all in one place.

Instead of reacting to government changes at the last minute, you can take control now, simplify your finances, and focus on growing your business.

When free filing disappears, you will already be ready.

Free invoicing app

Send invoices in seconds, track payments, and stay on top of your cash flow — all from your phone with the Invoice24 mobile app.

Trusted by 3,000,000+ businesses worldwide

Download on the App StoreGet it on Google Play