Your Guide to the New Tax Filing Process: What UK Small Businesses Need to Know Before 2026
The landscape of UK tax filing is changing, and small businesses need to prepare for the upcoming changes. In March 2026, the joint filing system for Company Tax Returns will come to an end. This change, part of HMRC’s Making Tax Digital initiative, means businesses will need to submit separate returns for both their company and directors. While this may sound daunting, with the right preparation, it can be a smooth transition.
Understanding the Tax Filing Changes
What is Joint Filing?
Currently, joint filing allows businesses to submit both company and director tax returns at the same time. It’s a convenient process that simplifies tax compliance. However, this system will be phased out by March 2026 in favour of separate submissions for company and director returns.
The End of Joint Filing in 2026
The joint filing system for Company Tax Returns will officially end in March 2026. This change is in line with HMRC’s ongoing Making Tax Digital initiative, which aims to make tax reporting more efficient and accurate.
While this marks a significant shift, it also presents an opportunity to improve how we manage our taxes. Businesses will need to adjust their processes to accommodate separate filings for the company and directors.
What Does This Mean for Small Businesses?
With joint filing ending, there are a few key changes small businesses will need to consider:
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Reviewing Your Processes: You’ll need to adapt your current filing systems to manage separate returns. This might mean reviewing your software, workflows, and filing deadlines.
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Investing in Software: Commercial software, such as QuickBooks, will be required for submitting separate returns. It’s a good time to start researching the right software for your needs.
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More Time for Preparation: Without joint filing, businesses will need to dedicate more time to both company and director tax returns. This may involve managing two separate filing deadlines and ensuring your personal and business records are in order.
Navigating the New Filing Process
Using Commercial Software
From March 2026, businesses must use commercial software to submit their tax returns. This aligns with HMRC’s digitalisation efforts and will help streamline the process. When choosing software, consider factors like ease of use, compatibility with your current systems, and the level of customer support offered.
As a QuickBooks ProAdvisor, I recommend exploring software options like QuickBooks, which can simplify tax filing and help keep your records organised. Getting ahead of this change and choosing the right tool now will make the transition much easier.
Separate Filing for Directors
Directors will need to file their personal tax returns separately from the company’s. This requires keeping clear records of any income received from the business and understanding how these records will affect your personal tax filing.
With different deadlines for company and director returns, it’s important to stay on top of both. Proactive management of your personal and business finances will be key to avoiding penalties and ensuring everything is filed on time.
How VAccounts Can Help
At VAccounts, we understand that these changes may feel overwhelming, but we’re here to support you through the transition. Here’s how we can assist:
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Guidance on Tax Filing Process: We’ll help you understand the upcoming changes and how they affect your business. Our advice will ensure that your business is ready for the shift to separate filings.
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Software Recommendations: Based on your business needs, we can guide you in selecting the right commercial software for your tax filings.
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Support with HMRC Compliance: We’ll make sure your tax filings are in line with HMRC’s requirements, so you don’t have to worry about deadlines or compliance issues.
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Streamlining Your Tax Filing Process: With our experience, we’ll help you set up processes that save time and reduce stress when submitting your returns.
While we won’t be providing software training, we’ll ensure you’re prepared and confident to make the change smoothly.
Get Ready for the Change
The end of joint filing might seem like a challenge at first, but with early preparation, the right tools, and the proper guidance, your business will be ready for the transition.
If you have any questions about the upcoming changes or need advice on preparing for 2026, feel free to get in touch. At VAccounts, we’re here to help you manage your tax affairs with ease, so you can focus on growing your business.