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HMRC rules threaten a 70-year-old allotment, it has been warned. New requirements for expensive accounting software are putting not-for-profit community projects in jeopardy. Bruce Chadwick, chairman of his local community allotments in Taunton, Somerset, is responsible for looking after the roughly £1,500 annual turnover. But new HMRC rules over filing accounts have left him worried about the 70-year-old group’s future. HMRC has written to Mr Chadwick explaining the free filing service for community interest companies (CIC) has been scrapped. READ MORE New 10mph speed limit in England 'for next six months' with drivers warned As of March 2026, taxpayers will need to buy commercial software. This can cost £500. “We understand this is disappointing news, but the service is now outdated and does not meet modern digital standards,” HMRC said. “We would have to raise our £35 annual fee by at least a third,” Chadwick said. “Those who are facing financial challenges may struggle with that. “We have no assets, don’t pay anyone or trade. So to have to pay such a lot for the privilege of telling HMRC that is quite a stretch. We are being asked to absorb a cost we can’t afford, have no need of and get nothing out of.” He said: “Taking on full liability could be ruinous. If we were found responsible for a local council drain that got blocked on allotment land or some other damage, I could be personally liable for thousands of pounds. “Many local group leaders who face the prospect of closing their CICs and becoming a simple association due to these new costs will feel the same. They will simply shut down their groups because it is no longer feasible to run them.” Gideon Amos, the Liberal Democrats MP for Taunton and Wellington, said: “How can an allotment society that doesn’t pay tax be expected to buy software it can’t afford because the HMRC computer says no? “Once again, this shows a government machine completely out of touch with small organisations and businesses, the backbone of our economy and our communities.” A spokesman for HMRC said: “We wrote to the customer 12 months before the changes to give them plenty of time to prepare and select a software provider, which 90 per cent of companies are already using to submit their annual company tax returns.”
