The reforms, introduced under the Economic Crime and Corporate Transparency Act 2023 (ECCT Act), were originally expected from April 2027 but have been delayed by 12 months to give companies and software providers more time to prepare. Our Director and industry expert on accounts auditing and reporting, Steve Collings, explains the changes below.
What’s changing with Companies House accounts filing from April 2028?
The reforms will change both how annual accounts are filed, and, for some companies, what information must be submitted. The key changes include:
- Mandatory software-only accounts filing for all companies
- Small companies and micro-entities will need to file profit and loss accounts
- Small companies and micro-entities will be able to opt out of publishing their profit and loss account on the public register
- Abridged accounts will be removed
- Stronger eligibility statements will be required when claiming an audit exemption
- Component parts of accounts and reports will need to be filed together
- New restrictions will apply when shortening an accounting reference period.
The reforms aim to improve the transparency, accuracy and reliability of information held by Companies House and support efforts to tackle economic crime.
Software-only Companies House accounts filing will become mandatory
From 1st April 2028, all UK-registered companies will need to file their annual accounts in Inline eXtensible Business Reporting Language (iXBRL) format using commercial software.
This applies whether accounts are filed directly by the company or by an accountant or other agent. Existing web and paper-based accounts filing routes will close.
Businesses that currently file their own accounts will therefore need to make sure they have suitable software in place. Companies House provides an interactive list of software providers on GOV.UK to assist with this.
Some businesses may therefore need to factor in the cost of purchasing appropriate software or using an accountant or other professional to file on their behalf.
Will small companies have to file profit and loss accounts?
Yes. Small companies and micro-entities will be required to file their profit and loss account with Companies House from 1st April 2028.
However, they will have the option to opt out of having this information published on the public register, helping to protect commercially sensitive information and business privacy.
The profit and loss account must still be filed with Companies House, even where the business chooses not to make it publicly available. Further details about the opt-out process will be confirmed in due course.
Abridged accounts will be removed from April 2028
The option for companies to prepare and file abridged accounts will also be removed.
Small companies will instead be required to file full accounts containing a balance sheet and profit and loss account prepared under the small companies accounting regime.
Businesses that currently use abridged accounts should speak to their accountant before the changes take effect to understand how their future accounts will need to be prepared.
What is changing for companies claiming audit exemption?
Companies claiming an exemption from audit will need to provide a strengthened statement confirming which exemption they are claiming and that they are eligible to claim it.
This forms part of the wider aim of improving the accuracy and reliability of information held by Companies House.
New restrictions on changing your accounting reference period
New restrictions will also apply to companies wishing to shorten their accounting reference period.
From 1st April 2028, companies will need to provide a business reason if they want to shorten their accounting reference period more than once within five years. Further details will be set out in regulations.
Accounts and reports will need to be filed together
Where accounts and reports contain several component parts, these will need to be filed together rather than separately.
Companies and their advisors will therefore need to make sure all relevant documents are complete and ready for submission at the same time
Preparing your business for the Companies House changes
The delay from April 2027 to April 2028 gives businesses and software providers more time to prepare, but companies should still review their current arrangements well in advance.
This will be particularly important if you currently file accounts yourself, use Companies House's web or paper filing services, prepare abridged accounts or qualify as a small company or micro-entity.
Companies House will contact companies through their registered email address with information about the changes, so businesses should make sure their registered email address is correct and monitored.
At LWA, we will continue to monitor Companies House guidance and keep our clients informed as further details are confirmed.
If you would like to discuss how the Companies House accounts filing changes could affect your business, please contact the LWA team on 0161 905 1801 in our South Manchester office, or 01925 830 830 for our Warrington team, or you can email mail@lwaltd.com with ‘Companies House accounts filing’ in the subject field.