Associate Emma Ford, in our Corporate & Commercial team, highlights the changes to accounts filing requirements that business owners should be aware of.
Companies House has confirmed that important changes to company accounts filing will come into force from April 2028. The reforms form part of the Economic Crime and Corporate Transparency Act 2023 and are intended to improve the accuracy, reliability and transparency of information held on the companies register. Every company that files accounts at Companies House will be subject to these new requirements.
What is changing?
For small companies and micro-entities, one of the most significant changes is that profit and loss accounts will need to be filed with Companies House. At present, many smaller businesses are able to file less detailed accounts, meaning certain financial information does not need to be submitted or made public in the same way. From April 2028, this will no longer be an option.
Will profit and loss information be made public?
Under the new rules, small companies and micro-entities will have to file their profit and loss accounts as other companies already do, but they will be able to opt out of having that information published on the public register, so that it is only visible to Companies House, HMRC and law enforcement agencies. This is a helpful compromise for smaller businesses that may be concerned about competitors, suppliers or customers being able to see commercially sensitive information. Further details on the opt-out process will be revealed in due course.
Software-only filing will become mandatory
Another major change is that all companies will need to file their annual accounts using commercial, digitally compliant software. This is aimed to improve the quality and usability of financial information held on the register. Existing paper and web-based routes for filing accounts will be phased out, and this means businesses that currently file accounts themselves through Companies House’s online service, or rely on paper filings, will need to make sure they have suitable software or support from an accountant or adviser before the deadline. It is important to note that Companies House web filing services will remain available for other non-accounts filings, including confirmation statements and updates to director details.
Other accounts filing reforms
The reforms will also remove the option to file abridged accounts, strengthen the eligibility statement required when a company claims the audit exemption, require all parts of the accounts and reports to be filed together, and limit how often a company can shorten its accounting reference period.
What should small business owners do now?
Although April 2028 may feel some way off, small business owners should not leave preparation until the last minute. It would be sensible to review how your accounts are currently prepared and filed, seek advice where needed and check whether your software will meet the new requirements. Companies should also make sure their registered email address at Companies House is up to date, as further guidance will be sent directly to companies.
Taking early advice will help small companies understand what information they will need to file, what may remain unpublished, and how to avoid last-minute compliance issues when the new rules take effect.
For further information or legal advice, please email law@blandy.co.uk or call 0118 951 6800.
This article is intended for the use of clients and other interested parties. The information contained in it is believed to be correct at the date of publication, but it is necessarily of a brief and general nature and should not be relied upon as a substitute for specific professional advice.
