What UK Businesses Need to Know About the Joint Online Filing Service Closure by Companies House and HMRC 🔍

What's Happening and Why It Matters to Your Business 🧩

The Company Accounts and Tax Online (CATO) joint filing service is closing. This service lets UK businesses send their accounts and tax returns to both Companies House and HM Revenue & Customs (HMRC) at the same time. Now, companies must file these separately.

This change is part of the UK government's plan to make its digital services better. While it means some changes to how you file, it also brings new tools that could make things easier in the long run.

In this article, we'll explain:

  • What the joint filing service closure means
  • How to file your accounts and taxes now
  • What tools can help you
  • Answers to common questions




The End of Joint Filing: What You Need to Know 📋

The Company Accounts and Tax Online service (also called CATO) is shutting down. This means:

  • You can no longer submit your company accounts and corporation tax return in one go
  • You must now use two separate systems:
    • Companies House WebFiling for your company accounts
    • HMRC Corporation Tax Online for your tax return

This change affects all UK limited companies, both private and public, who used the joint service before.

BeforeAfter
One submission process.    Two separate submissions
File through CATOFile through WebFiling AND Corporation Tax Online
Single login neededSeparate logins for each system

Why Is This Happening? 🤔

The UK government is updating its digital tax infrastructure to make things work better in the long run. Research showed that having specialized systems for each agency would be better than one combined system.

The main reasons for this change include:

  • Improved efficiency - Each agency can focus on its specific needs
  • Better maintenance - Easier to update separate modern systems
  • Enhanced user experience - Systems designed specifically for accounts or tax
  • Digital transformation - Part of the UK's "Digital by Default" approach

Timeline and Implementation Status ⏱️

The government planned this change carefully to give businesses time to adjust. The transition period included advance notice and guidance to help companies prepare for the new way of filing.

Both Companies House and HMRC have worked with software vendors and accounting professionals to make the switch as smooth as possible.

How to File Now: Step-by-Step Guide 📝

For Companies House Filing

  1. Prepare your annual accounts according to the UK Companies Act 2006
  2. Visit the Companies House WebFiling service
  3. Log in with your Companies House authentication details
  4. Upload your accounts in iXBRL format
  5. Submit and confirm receipt

For HMRC Filing

  1. Prepare your CT600 form and tax computation
  2. Log in to Government Gateway
  3. Access the Corporation Tax Online service
  4. Upload your return and supporting documents in iXBRL format
  5. Submit and save your confirmation

Example: Filing Timeline for "Smith Trading Ltd"

Let's look at a simple example for a company with a December 31st year-end:

  • Accounts filing deadline: September 30th (9 months after year-end)
  • Corporation tax payment deadline: October 1st (9 months and 1 day after year-end)
  • Corporation tax return deadline: December 31st (12 months after year-end)

Before: Smith Trading Ltd would prepare one set of documents and submit through CATO. After: They prepare company accounts for WebFiling and tax return for Corporation Tax Online.

Technical Requirements and Software Help 💻

Both systems require financial data to be tagged using iXBRL (Inline eXtensible Business Reporting Language). This hasn't changed from the joint system.

Most accounting software has been updated to handle the separate filings. Popular options include:

  • FreeAgent
  • Sage
  • QuickBooks
  • Xero

These programs can prepare your accounts and tax returns in the right format for both systems.

Impact on Different Types of Businesses 🏢

Small Businesses and SMEs

Small companies may feel the biggest change since they often handled filing in-house. The need to use two systems means:

  • Possibly more time needed for administrative tasks
  • Learning two interfaces instead of one
  • Managing two sets of login details

However, modern software can help make this easier.

Larger Companies

Larger businesses often use professional accountants who are already familiar with both systems. The impact may be less noticeable, though there could be:

  • Minor changes to workflow processes
  • Small increases in administrative costs
  • Need to update internal procedures

Preparing for Success: Tips for Smooth Filing 🌟

To make the separate filing process easier:

  • Keep good records throughout the year
  • Update your software to versions that support both systems
  • Check deadlines carefully - they may differ for accounts and tax
  • Consider working with an experienced accountant who knows both systems
  • Set up calendar reminders for both filing deadlines

Support Resources Available 📚

Help is available from several sources:

  • Companies House provides guidance on accounts filing
  • HMRC offers support for tax returns
  • The Financial Reporting Council gives advice on reporting standards
  • Professional bodies like the Institute of Chartered Accountants in England and Wales (ICAEW) and Association of Accounting Technicians (AAT) offer guidance
  • MA & Co Accountants can provide personalized support

Industry and Expert Response 👥

The accounting profession has generally adapted well to the change. Most chartered accountants and tax professionals were already familiar with both systems.

Industry bodies like the Federation of Small Businesses (FSB) and Confederation of British Industry (CBI) have provided guidance to help their members adjust.

The British Chambers of Commerce has worked with the government to ensure businesses understand the new requirements.

Looking Forward: Digital Tax Transformation 🔮

This change is part of a bigger picture. The UK's Making Tax Digital (MTD) initiative aims to make all tax digital eventually. While separate filing might seem like an extra step now, it fits into this longer-term plan.

Future developments might include:

  • More API integration between systems
  • Better data sharing between government departments
  • More automated filing options
  • Improved error reduction measures

Common Questions and Answers ❓

Q: Will this change affect my filing deadlines?

A: No, the legal deadlines remain the same. However, you now need to track separate submission dates for Companies House and HMRC.

Q: Do I need new software?

A: Most accounting software has been updated to handle the separate filings. Check with your provider to ensure your version supports both systems.

Q: Is the iXBRL tagging requirement different now?

A: No, both systems still require iXBRL tagging for financial data. The technical standard remains consistent.

Q: Will this cost my business more?

A: There may be a small increase in administrative time. If you use an accountant, ask them about any potential changes to their fees.

Q: What if I make a mistake on one filing but not the other?

A: You'll need to correct each filing separately through the appropriate system. Always double-check both submissions.

Benefits Despite the Change 💼

While the switch to separate filing systems means some adjustments, there are potential benefits:

  • Each system can be more specialized for its purpose
  • Future improvements can be implemented faster
  • User interfaces designed specifically for accounts or tax
  • Potential for better integration with accounting software

How MA & Co Accountants Can Help 🤝

Navigating these changes can be challenging, but you don't have to do it alone. Our team at MA & Co Accountants specializes in:

  • Preparing and filing company accounts with Companies House
  • Completing and submitting corporation tax returns to HMRC
  • Setting up efficient digital filing workflows
  • Make sure you meet all compliance requirements
  • Providing cost-effective solutions for businesses of all sizes

We've already helped many clients adapt to the separate filing requirements and can make the process simple for you, too.

Summary: Key Points to Remember 📌

  • The CATO joint filing service has closed
  • You now need to file separately with Companies House and HMRC
  • Both systems still require iXBRL tagging
  • Filing deadlines remain unchanged
  • Accounting software has been updated to support both systems
  • This is part of the UK's broader digital tax transformation

The change to separate filing systems means some adjustments for UK businesses, but with the right preparation and support, you can manage the process efficiently.

Need help with your accounts and tax filings? Contact our expert team today for personalized advice and support.

🔗 Read more on our blog: https://bit.ly/41crAyQ
📅 Book a Free Consultation: https://bit.ly/BookFreeConsultation15
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Location: Croydon, UK

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