Major reforms to company accounts filing requirements have been delayed until April 2028, giving businesses additional time to prepare for significant changes introduced under the Economic Crime and Corporate Transparency Act 2023.
The reforms are designed to improve transparency, strengthen corporate accountability and help tackle economic crime. However, they will also introduce new filing requirements and may increase administrative responsibilities for many businesses.
Why Are the Changes Being Introduced?
The reforms form part of wider government efforts to improve the quality and reliability of information held by Companies House.
The aim is to:
- Increase transparency.
- Improve the accuracy of company information.
- Reduce opportunities for fraud and economic crime.
- Strengthen trust in the UK business environment.
To help businesses adapt, the implementation date has now been moved from April 2027 to April 2028.
Small Companies and Micro-Entities Will Need to File Profit and Loss Accounts
One of the most significant changes affects small companies and micro-entities.
From April 2028, these businesses will be required to file profit and loss accounts with Companies House, bringing them more in line with larger companies.
To help protect commercially sensitive information, businesses will be able to opt out of having this information published on the public register.
This balances the government’s transparency objectives with the privacy concerns of smaller businesses.
Software-Only Accounts Filing
Another major change is the move to mandatory software-based filing.
From April 2028:
- All company accounts must be submitted using commercial software.
- Accounts must be filed in iXBRL (Inline eXtensible Business Reporting Language) format.
- Paper filing for accounts will end.
- Existing web-based filing systems for accounts will also be withdrawn.
This requirement will apply whether accounts are filed directly by a company or through an accountant or agent.
Businesses that currently rely on paper or web filing methods will need to ensure they have suitable software in place before the deadline.
Abridged Accounts Will Be Removed
The reforms will also remove the option for companies to file abridged accounts.
This change is intended to provide greater consistency and improve the quality of financial information submitted to Companies House.
Businesses currently using abridged accounts may need to review their reporting processes ahead of the implementation date.
Stronger Audit Exemption Requirements
Companies claiming an audit exemption will face additional obligations.
A strengthened eligibility statement will be required, providing greater assurance that companies genuinely qualify for exemption from a statutory audit.
This is intended to improve accountability and reduce misuse of audit exemptions.
Accounts Must Be Filed Together
The reforms will also require all component parts of annual accounts and related reports to be filed together as a complete package.
This change aims to improve data consistency and ensure information is submitted in a more structured format.
What Does This Mean for Businesses?
Although April 2028 may seem a long way off, businesses should begin considering how the changes could affect them.
Areas to review include:
Accounting Software
Businesses should check whether their current systems can support iXBRL filing requirements.
Filing Processes
Existing accounts preparation and submission procedures may need updating.
Compliance Costs
Some businesses may face additional costs associated with software, training or professional support.
Record Keeping
Maintaining accurate and complete financial records will become even more important under the new regime.
Preparing Early
Companies House has confirmed that it will contact businesses through their registered email addresses as further guidance becomes available.
Businesses can also explore approved software solutions through the government’s list of recognised providers.
Taking steps now can help avoid last-minute disruption and ensure a smoother transition when the new rules take effect.
Final Thoughts
The upcoming Companies House reforms represent one of the most significant changes to company accounts filing requirements in recent years.
While the delay until April 2028 provides additional preparation time, businesses should use this opportunity to review their accounting systems, compliance processes and software requirements.
Planning ahead can help minimise disruption and ensure your business remains compliant when the new rules come into force.
If you’d like advice on preparing for the changes, selecting suitable accounting software or reviewing your accounts processes, we’d be happy to help.
📞 01527 368220
📧 info@ojwassociates.co.uk
