Staying ahead of reporting obligations is a priority for every UK business. As of the 2025/26 tax year, more companies will face the push towards software-only filings and enhanced digital submissions. These developments may seem daunting, but effective technology can simplify the process, save time and ensure accuracy. Below, we look at the evolving compliance environment and outline how efficient accounting systems can transform the way you submit your financial data.
Understanding the new financial reporting requirements for 2025/26
The upcoming 2025/26 tax year (which starts on 6 April 2025) signals further advances in paperless processes. HM Revenue & Customs (HMRC) has been broadening its Making Tax Digital (MTD) initiative, and many businesses now complete VAT returns digitally. As part of this broader push, the focus is gradually shifting to corporation tax and other financial disclosures, all designed to reduce errors and increase efficiency.
Small and medium-sized enterprises (SMEs), as well as larger corporations, may face updated processes for filing annual accounts and meeting statutory deadlines. Companies House has also expressed a commitment to expanding digital services. These changes reflect a commitment to improved accuracy and transparency.
According to recent government data, close to 99% of VAT returns are already submitted online in the UK. This growing reliance on digital systems underscores the importance of using up-to-date software to handle new reporting requirements. For some businesses, a piecemeal approach to compliance might no longer be enough – fully integrated technology solutions are becoming essential.
Why accounting technology is essential for compliance
Quality accounting software offers more than automated record-keeping. It can strengthen your reporting processes and give you deeper insights into your finances. When you move away from traditional spreadsheets and paper documents, you can do the following.
- Reduce administrative time: Automated data entry and direct bank feeds allow you to spend less time on manual tasks, freeing up hours for higher-value activities like client service or strategic planning.
• Improve data accuracy: Software that pulls data directly from your bank and other sources can lower the risk of errors. This reduces the need for re-checks and corrections when the filing deadline arrives.
• Boost cashflow monitoring: Real-time insights on cashflow help you spot any emerging issues quickly. Timely awareness of your position also means you can maintain healthy finances.
• Create stronger audit trails: Digital record-keeping allows you to track every entry, edit or correction. This is invaluable if HMRC requires an audit of your submissions.
With the 2025/26 tax year shifting more obligations online, you have an opportunity to modernise. The right tools allow you to manage each stage of your financial reporting process from a single platform.
Software-only filings: What to expect
Software-only filings represent a natural extension of the online processes many businesses already use for VAT. Instead of relying on paper or PDF forms, you will submit critical information through compatible software. This approach offers the following advantages.
- Pre-populated fields: Some software will populate your forms using the data you have already recorded, reducing the chance of transcription mistakes.
• Instant submission confirmations: Electronic filing allows HMRC or Companies House to acknowledge receipt immediately. This helps you keep track of deadlines and avoid late submissions.
• Automatic updates: Software providers often release updates when reporting requirements change. This ensures that your system remains compliant and that you do not have to reconfigure forms manually.
Over time, we expect HMRC and Companies House to widen the range of reports that must be filed through software. Acting early to integrate your processes can prevent last-minute pressure or unexpected costs.
A step-by-step approach to upgrading your financial systems
Every business has unique needs, so there is no one-size-fits-all method for adopting new software. However, the following steps can help guide your transition.
- Review your current processes
Identify any points where reporting tasks or record-keeping cause delays. Do you rely on manual data entry? Are your receipts and invoices stored across multiple spreadsheets? This initial review will reveal the areas with the most room for improvement. - Research and select the right software
There are several solutions designed for UK businesses. Look for options that integrate with HMRC’s digital systems and are compatible with your existing workflows. Make sure you choose a platform that offers easy upgrades, strong security and reliable customer support. - Plan your rollout
Once you settle on a solution, schedule a gradual rollout so your team can learn the new system. Setting a realistic timeline reduces disruption. You might, for example, start by using the software for invoice processing, before adding in payroll and final accounts. - Train your staff
Prepare short training sessions to show your employees how to record transactions, generate reports and submit returns. Training ensures consistency in data entry and encourages them to feel comfortable using the new features. - Monitor progress
Track how well the transition meets your goals. If you experience a drop in errors or a faster month-end close, you can be confident your investment is paying off. Should any issues emerge, you can make adjustments early rather than waiting until the last minute.
Following these steps will give you a robust, scalable approach to software-based filings and help you stay on top of any reporting changes.
The benefits of working with an expert partner
While technology can do a lot of the heavy lifting, specialist support is often helpful when it comes to tax planning and compliance. An experienced accounting practice can guide you through each requirement and suggest improvements to your existing processes. We can also liaise with HMRC on your behalf, so you do not have to deal with endless phone queues or confusing forms.
At EV Accountants, we deliver tailored support to meet the different needs of our clients. Learn more about our approach or speak to us about our modern accounting systems and compliance services. We know how stressful deadlines can be when you are not confident in your software setup. With expert guidance and the right tools, you can feel more assured that all your filings are accurate and submitted on time.
Preparing your business for the future
Financial reporting requirements will continue to evolve. Each new rule or deadline represents a chance to refine how you manage and understand your business’s performance. Accounting software not only helps you meet obligations, but also allows you to make better decisions based on real-time data. As more businesses switch to digital tools, those that fail to adapt risk missing out on valuable opportunities for growth.
Keeping an eye on HMRC’s updates and Companies House announcements can keep you informed about potential changes to deadlines and digital reporting mandates. If you invest in robust systems now, you will be prepared for the 2025/26 tax year and whatever the future holds.
As technology continues to shape the way you manage compliance, remember that there is support available. You are not alone in upgrading your processes. We have guided many clients through the digital shift and will remain on hand to offer help at every step.
If you are ready to simplify your reporting for 2025/26, contact us for a personalised approach. We will help you choose the right accounting tools and ensure you meet every deadline. Get in touch with EV Accountants today if you would like tailored advice on technology solutions and financial reporting.