Companies House filing reforms: What businesses need to know

The UK government has confirmed changes to Companies House filing requirements under the Economic Crime and Corporate Transparency Act 2023 (ECCTA). These reforms are designed to:

• Make information on the Companies House register more accurate and reliable.
• Help reduce economic crime.
• Modernise corporate reporting.

The changes are expected to apply from April 2028. While this may feel some way off, it is sensible for businesses to start reviewing their filing arrangements in good time.

Key changes coming into effect from April 2028

• Mandatory software filing.
• Small and micro entities to file profit and loss accounts.
• Abolition of abridge accounts.
• Audit exemptions.
• Account periods.

Mandatory software filing

One of the main changes is the move to mandatory software-only accounts filing. From April 2028, all companies will need to file annual accounts using commercial software in iXBRL format. Paper filing and Companies House web-based accounts filing services will no longer be available for annual accounts.

If your business currently prepares or files accounts directly with Companies House, now is a good time to check whether your software and processes will meet the new digital filing requirements.

Changes for small companies and micro-entities

The changes are likely to be particularly relevant for small companies and micro-entities, many of which currently file reduced information at Companies House.

Under the new rules, small companies and micro-entities will need to file a profit and loss account with their annual accounts. This will mean more financial information is submitted to Companies House, HMRC and law enforcement agencies.

Small companies and micro-entities are expected to be able to opt out of public disclosure of their profit and loss account. In practice, this would mean the information is available to relevant authorities but not shown on the public register.

Removal of abridged accounts

The option to file abridged accounts will be removed. Businesses that currently use abridged accounts should review how this will affect the accounts they prepare and the information they file.

For many businesses, this may mean providing more detail in their statutory accounts than they have been used to.

Although small companies and micro-entities will still benefit from various disclosure exemptions available under company law and accounting standards, they will no longer be able to rely on abridgement to reduce the level of detail presented in their financial statements.

The removal of abridged accounts will not fundamentally change how annual accounts are prepared. However, it forms part of a wider move towards greater transparency, standardisation and digital reporting within the UK corporate reporting framework.

Strengthened audit exemption requirements

Companies claiming an audit exemption will need to include a clearer statement confirming that they are entitled to do so.

For most owner-managed businesses and small companies, the practical impact should be relatively limited. If the company already qualifies for audit exemption and maintains good accounting records, the additional work is likely to consist mainly of ensuring appropriate evidence and documentation are retained.

However, companies operating close to the audit thresholds may need to pay particular attention to:

• Changes in turnover.
• Growth in balance sheet assets.
• Employee numbers.
• Group company relationships.
• Any factors that could affect exemption eligibility.

Businesses experiencing rapid growth should monitor these areas throughout the year to avoid inadvertently losing their exemption status.

In most cases, these reforms will not result in an audit becoming mandatory. Instead, they represent a shift towards greater director accountability and more robust verification of exemption claims, supporting the government’s wider objective of increasing trust and transparency in the UK corporate reporting system.

Restrictions on accounting reference period changes

The reforms will also tighten the rules on accounting reference periods, including restrictions on how often companies can shorten their accounting period.

If your company regularly changes its accounting period, it would be worth reviewing future plans before the new rules come in.

Filing of complete accounts packages

Companies House will require all parts of an accounts filing to be submitted together as one complete package, so businesses should allow enough time to prepare and review the full filing before submission.

Preparing for the changes

Although the changes are not expected until April 2028, early planning will help businesses avoid last-minute issues. Practical steps to consider include:

• Review your current accounts preparation and filing processes.
• Check whether your current software can support iXBRL filing.
• Consider whether the new small company filing rules will affect the information you disclose.
• Review audit exemption eligibility and keep supporting documentation up to date.
• Review whether accounting period restrictions could affect future plans.
• Consider how the removal of abridged accounts may affect your year-end accounts process.

These reforms represent a significant change to the way UK company accounts are filed. Taking time to review the requirements now should help businesses understand what will change, identify any practical issues early, and plan a smoother transition.

If you have any questions about the changes to Companies House filing requirements or how they may affect your business, Gerald Edelman can help. Our team can provide practical guidance on the new requirements, review your current filing arrangements and help you prepare for the changes ahead.