The End of Free Filing: What UK Company Directors Need to Know

If you've been filing your company accounts for free using CATO or WebFiling, I've got some bad news. Both services are shutting down - CATO in March 2026 and WebFiling in April 2027.

I know, it's frustrating. But let me break down what's actually happening and what you need to do about it.

The Two Big Deadlines

Here's the situation:

March 2026 - CATO is closing. This is the free service you might be using to file your Corporation Tax return (CT600) with HMRC.

April 2027 - WebFiling is closing. This is Companies House's free service for filing your annual accounts.

After these dates, there's no free option. You'll need to either buy software or hire an accountant.

And before you ask - no, you can't just ignore it. These aren't optional changes.

What Exactly is CATO?

CATO stands for Company Accounts and Tax Online. It's been around for years and let you file your CT600 Corporation Tax return through the Government Gateway for free.

Pretty useful, right? You could prepare your accounts, submit your tax return, and sort out both HMRC and Companies House in one go. All without spending a penny.

But it's going. March 2026 is the cut-off.

After that, you'll need proper accounting software to prepare your CT600 in the right format (iXBRL) and submit it to HMRC.

What About WebFiling?

WebFiling is Companies House's version - their free online form where you could file your company's annual accounts.

It was simple. Fill in some boxes, click submit, done.

But from April 2027, that's gone too. You'll need software or an accountant to file your Companies House accounts.

Why Is This Happening?

The government says it's all about the Economic Crime and Corporate Transparency Act. Basically, they want:

- Better quality company data

- Less fraud

- Proper audit trails

- Modern digital systems

Fair enough, but it puts the cost and complexity onto us business owners.

Look, I get why they're doing it. The current free systems were outdated and probably easy to manipulate. But it doesn't make it less annoying for small business owners who were happily filing for free.

Here's What Most People Don't Realize

A lot of company directors think filing accounts is just one thing. It's not.

You actually have TWO separate filings:

1. Filing 1: The HMRC One (CT600)

This goes to HMRC. It's your Corporation Tax return. You're telling them how much profit you made and how much tax you owe.

Deadline: 12 months after your year-end

Tax payment: Due 9 months and 1 day after your year-end

Example: Year-end 31 March 2025? Your CT600 is due 31 March 2026, but you need to pay the tax by 1 January 2026.

2. Filing 2: The Companies House One

This goes to Companies House. It's your statutory accounts. It's public information that anyone can look up about your company.

Deadline: 9 months after your year-end

Example: Year-end 31 March 2025? Accounts due 31 December 2025.

Two different organizations. Two different deadlines. Two different purposes.

Miss either one? You get penalties. Miss both? Even bigger penalties.

So What Are Your Options?

Right. You can't use the free services anymore. What now?

Option 1: Buy Software and Do It Yourself

You could buy accounting software like Xero, Sage, or QuickBooks.

Here's what that looks like:

Costs:

- Accounting software: £10-£35 per month (£120-£420 a year)

- CT600 software: £20-£100 per year

- Total: Around £150-£500 per year

But wait, there's more:

- Learning how to use it: 10-20 hours

- Keeping your books up to date: 2-3 hours per month

- Actually filing everything: Another 10-15 hours per year

And here's the thing nobody tells you - if you get it wrong, you're the one facing the penalties. Not the software company. You.

Plus, you won't get any tax planning advice. You're on your own figuring out whether you should take salary or dividends, when to make pension contributions, what expenses you can claim... all the stuff that actually saves you money.

Who should go this route?

Honestly? Only if you:

- Actually enjoy accounting

- Have plenty of time

- Are comfortable with software

- Don't mind the risk

For most business owners, this isn't the best option.

Option 2: Hire an Accountant

Full disclosure - yes, I'm an accountant. But hear me out on the math.

Our packages start at £345 per year for a simple company. Up to £645 if you're VAT-registered with employees.

What do you get for that?

- We prepare your accounts properly

- We file your CT600 to HMRC (with the software they require)

- We file your accounts to Companies House (with the software they require)

- We do your Self-Assessment tax return

- We handle your deadlines so you don't have to think about them

- We give you tax planning advice that usually saves you more than our fee

- We deal with HMRC if they have questions

Your involvement? Maybe 2-3 hours giving us your information. That's it.

Compare that to 50+ hours doing it yourself, plus the stress, plus the risk of getting it wrong.

Here's the real calculation:

DIY: £500 in software + 50 hours of your time + no tax advice + risk of penalties

Accountant: £350-£650 + 2-3 hours of your time + tax planning that saves you money + zero stress

When you factor in what your time is actually worth, an accountant usually works out cheaper.

There's More - The Requirements Are Changing Too

It's not just about the software. From April 2027, the actual requirements are getting stricter.

Small companies that used to file really simple "abridged" accounts? You'll now need to include a full Profit & Loss statement.

More details. More reports. More complexity.

Which, again, makes doing it yourself even harder and makes having an accountant even more valuable.

When This All Happens

Let me lay out the timeline:

Right Now (Until March 2026)

Everything still works. CATO is available, WebFiling is available. You can keep using the free services.

March 2026

CATO closes. You can't file your CT600 with HMRC for free anymore. But you can still use WebFiling for Companies House.

April 2027

WebFiling closes too. Now both filings need software or an accountant.

Here's my advice: Don't wait.

I know it's tempting to use the free services as long as possible. But here's what will happen:

- February/March 2026: Accountants will be absolutely swamped with people panicking about CATO closing

- March/April 2027: Even worse rush for WebFiling

When everyone waits until the last minute, accountants get fully booked, prices go up, and you end up stressed and paying more.

Transition now while you have time and options.

What Happens If You Don't Sort This Out?

Let's say you ignore this and miss your deadlines. What actually happens?

Miss Your HMRC Filing (CT600):

- £100 penalty after 1 day

- Another £100 after 3 months

- More penalties after 6 and 12 months

- Plus interest on any unpaid tax (currently about 7-8%)

Miss Your Companies House Filing:

- £150 after 1 month late

- £375 after 3 months

- £750 after 6 months

- £1,500 if you're more than 6 months late

Keep ignoring it? Companies House can strike off your company. Your company just ceases to exist. Everything you built - gone.

Not trying to scare you, but these are real consequences that really happen to real companies.

Common Questions I'm Getting

"Can't I just pay the penalty and keep using the free service?"

No. Once the services shut down, they're gone. There's no way to file except through software or an accountant. The penalties will just keep stacking up.

"I'm closing my company soon anyway. Do I need to bother?"

If your company exists after March 2026 or April 2027, yes. You need to keep filing until the company is officially dissolved.

"What if my company is dormant?"

Still need to file. Dormant companies still file accounts and CT600s. Same rules apply.

"I've got three companies. Does this get expensive?"

Software costs multiply by three. Accountants usually give multi-company discounts. Worth asking about package deals.

"Can I wait a bit longer before deciding?"

You can, but I wouldn't recommend it. The closer we get to the deadlines, the busier accountants get and the more you'll pay for rush service.

How We Can Help

Look, I run iUfinance. We've been handling company filings for years using proper software. This change doesn't affect us - we're already set up for it.

Here's what we do:

For Simple Companies: £345-£495 per year

That's companies without VAT or employees. We'll prepare your accounts, file your CT600 to HMRC, file your accounts to Companies House, and do your director's Self-Assessment.

Everything's included. No hidden fees.

For VAT-Registered Companies with Employees: £495-£645 per year

Same as above, plus we handle your VAT returns (four per year) and payroll for up to two employees.

Monthly Packages: From £50/month

If you want ongoing bookkeeping throughout the year, we've got monthly packages. Everything's kept up to date, you get management accounts, and we handle all the year-end filing.

The way it works is simple:

1. We have a chat (free, about 30 minutes) to understand your company

2. You send us your records

3. We sort everything out and file it

4. You get on with running your business

No complicated software to learn. No deadlines to remember. No stress about whether you've done it right.

And here's the thing - the tax planning advice we give usually saves clients more than our fee. We're not just ticking compliance boxes. We're helping you keep more of your money.

What You Should Actually Do Now

Don't wait for the rush. Here's what I'd do if I were you:

1. Check what you're currently using. If it's CATO or WebFiling, you need to make a change.

2. Get quotes from a couple of accountants. See what they charge and what's included.

3. Compare that to software costs plus your time. Be honest about what your time is worth.

4. Make a decision and transition before the deadlines.

That's it. Not complicated, just needs doing.

The worst thing you can do is ignore it until February 2026 or March 2027 and then panic.

Final Thoughts

Look, I get it. Nobody likes being told they have to change what's working for them.

But the free services are definitely closing. March 2026 and April 2027 aren't flexible dates - they're happening.

You've got two choices: software or an accountant.

For most small business owners, an accountant makes more sense. We handle the software, the filing, the deadlines, and give you tax advice that saves money.

But whatever you decide, decide soon. Don't be the person scrambling at the last minute.

If you want to chat about your specific situation, I'm happy to help. No pressure, just a conversation about what makes sense for your company.

Give me a call on 07512280115 or message us on WhatsApp.

Let's get this sorted before the rush.

Ion Nagurnea

iUfinance