Small business owners are being warned not to get caught out by the taxman after it closes down its online portal for filing tax returns and accounts next year – or they risk hefty penalties.
HMRC is shutting down its online filing service from 31 March 2026, after which business owners will need to pay to use commercial software to file their annual accounts and company tax returns.
It is understood the service is being shut down because it no longer meets modern digital standards or changes to UK company law.
But what some business owners may not realise is that they need to download their past three years’ accounts before the portal closes, or risk a tax nightmare down the line if HMRC decides to do a compliance check.
That’s because they will no longer be able to access their accounts online through the portal – and HMRC has made it clear that it won’t be hanging onto the paperwork.
The taxman states: “You’ll need to use the HMRC online service to download and save at least the last 3 years filed returns.
“You must do this on or before 31 March 2026. You will not be able to access your previous returns after this date. You might need these if:
HMRC does a compliance check You have any queries about what you previously submitted to HMRC or Companies House You decide to use an agent to help you in the future, and they ask to see your previous accounts and Company Tax returns”James Ward, chief executive officer of CompareYourBusinessCosts.co.uk, said anyone facing a compliance check who doesn’t have the relevant paperwork could face penalties for poor record-keeping.
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He said: “For small businesses, this change feels like one more administrative headache. Many have relied on that portal for years, so being told to download and store every return themselves can seem like a step backwards.
“HMRC’s reasoning makes sense on paper – the old system is expensive to maintain, and they’re trying to push everyone towards newer, integrated tax software – but that doesn’t make it any easier for people who aren’t tech-savvy.”
He said that while it is fair in principle as there has been a long lead time before the closure, in practice, it’s extra work for business owners, and they may not be aware of this specific requirement.
“If someone hasn’t saved their accounts and later faces a compliance check, HMRC will expect those records to be produced,” he said.
“They can help confirm filing dates or receipts, but they won’t reproduce the full returns.
“Persistent gaps or missing records could trigger penalties for poor record-keeping, so businesses really should download and store everything well before March 2026.”
Nick Robinson, managing director at Yorkshire Accountancy, added that firms could face extra stress and delays if they have to try to redo old figures and make mistakes.
“Asking companies to download three years of accounts isn’t ideal, but it’s a safeguard. Once the portal goes offline, those records are gone, so this is HMRC’s way of giving everyone a last chance to secure their data,” he said.
“If a business fails to download its accounts and HMRC asks for a compliance check, it could mean delays, extra stress, and a higher chance of mistakes when trying to reconstruct old figures.
“HMRC can offer some support, but they won’t retrieve or recreate full submissions, so downloading everything now is your best bet.”
A spokesperson for HMRC said: “We encourage business owners to set aside the time to download and save at least the last three years of filed company tax returns to ensure they have them to hand if checks are later carried out.”
What should I do after March 2026?
If you want to make changes to a previously-submitted return, or re-file a return after the service has closed, you’ll have to use commercial software (and re-enter all your information), or send a paper return to the Corporation Tax office.
If you want to change or correct your accounts with Companies House, you will need to use software or paper.
Going forward, you can file a paper return with HMRC if you have a reasonable excuse, or want to file in Welsh. Otherwise, you must file online.
You may also use web services or paper to file your accounts with Companies House.
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