Companies House will introduce changes to accounts filing due to governmental reforms under the Economic Crime and Corporate Transparency Act 2023 (ECCT Act 2023).
The changes will now come into effect from April 2028, rather than April 2027, to give companies more time to prepare.
The reforms include requiring small companies and micro entities to file profit and loss accounts with Companies House as other companies do. They will have the option to opt out of publishing this information on the public register.
As with Making Tax Digital, companies will be required to file annual accounts via commercial software.
The new rules will introduce additional limitations, including removing the option for companies to file abridged accounts and reducing the number of times a company can shorten its accounting reference period. There will also be a strengthened eligibility statement for all companies claiming an audit exemption and a requirement that the component parts of the accounts and reports be filed together.
Companies House will contact all companies via their registered email address to tell them about these changes and signpost available guidance.
Although transparency and data clarity were prime factors in the planned changes, allowing small companies and micro-entities to opt out of publishing their filed profit and loss accounts protects their privacy and mitigates commercial risks.
Software-only accounts filing
From April 2028, Companies House will require all UK-registered companies to file their accounts in Inline eXtensible Business Reporting Language (iXBRL) format by using commercial software. This applies to companies that file their own accounts and those using third-party agents or accountants to file their annual accounts. Web and paper-based filing systems will be closed for account filings.
If you need help in meeting the new requirements, please call us. We would be happy to help you.
Your questions answered
What are the main changes Companies House is introducing from April 2028?
From April 2028, small companies and micro-entities will be required to file profit and loss accounts with Companies House. In addition, all companies will need to submit annual accounts using commercial software in iXBRL format, while paper and web-based accounts filing services will be withdrawn.
Will profit and loss accounts filed by small companies be publicly available?
Not necessarily. While small companies and micro-entities must file profit and loss accounts, they will have the option to opt out of publishing this information on the public register. This helps balance greater transparency with business privacy and commercial sensitivity.
Are there any other important changes businesses should be aware of?
Yes. The reforms will remove the option to file abridged accounts, limit how often companies can shorten their accounting reference period, strengthen audit exemption eligibility requirements, and require all components of accounts and reports to be filed together.
How can businesses prepare for the new filing requirements?
Businesses should review their current accounts filing processes and ensure they have suitable commercial software in place before April 2028. Companies House will provide guidance and contact businesses through their registered email addresses. If you need support with the transition, our team is happy to help.
