Companies House has confirmed that a series of significant reforms to company accounts filing requirements will now take effect from April 2028, giving businesses an additional year to prepare for the changes introduced under the Economic Crime and Corporate Transparency Act 2023 (ECCT Act).
Originally expected to be implemented in April 2027, the revised timetable is intended to provide companies, accountants and software providers with more time to adapt to the new requirements.
Greater Transparency in Company Reporting
One of the most notable changes will affect small companies and micro-entities.
Under the new rules, these businesses will be required to file profit and loss accounts with Companies House, bringing them more closely into line with the reporting requirements that already apply to larger companies.
However, recognising concerns around commercial confidentiality, Companies House has indicated that eligible businesses will be able to opt out of making their profit and loss accounts publicly available on the register.
The reforms are designed to improve the quality, consistency and transparency of company information held by Companies House, while balancing the privacy concerns of smaller businesses.
Mandatory Digital Filing Through Software
From April 2028, all UK-registered companies will be required to file annual accounts electronically using commercial software.
Accounts must be submitted in Inline eXtensible Business Reporting Language (iXBRL) format, whether they are filed directly by the company or through an accountant or other authorised agent.
As part of this transition, existing web-based and paper filing options for annual accounts will be withdrawn.
The move mirrors the wider digitalisation of tax administration seen through initiatives such as Making Tax Digital and is intended to improve the accuracy and efficiency of company reporting.
Other Key Changes Businesses Should Be Aware Of
The reforms will also introduce several additional changes, including:
- The removal of the option to file abridged accounts.
- Restrictions on how often a company can shorten its accounting reference period.
- A strengthened eligibility statement for companies claiming an audit exemption.
- A requirement for all components of the accounts and associated reports to be filed together as a single submission.
These measures are intended to enhance the reliability and integrity of information held on the Companies House register.
Preparing for the New Requirements
Companies House has confirmed that it will contact businesses directly through their registered email addresses to provide updates and guidance as implementation approaches.
Although the changes are still some time away, businesses may wish to begin considering their future filing arrangements, particularly if they currently rely on paper filing or do not use dedicated accounts preparation software.
For some smaller businesses, the move to mandatory software-based filing may result in additional compliance costs. However, adopting suitable software can also provide wider benefits, including improved record keeping, streamlined reporting and greater integration with other digital accounting processes.
What Should Businesses Do Now?
While the detailed regulations are still being finalised, business owners should ensure that their Companies House records, including their registered email address, remain up to date so they receive future communications.
If you are unsure how these changes may affect your company or would like advice on suitable accounts filing software, our team can help you understand the new requirements and prepare well in advance of the April 2028 deadline.
e: office@londonaccountants.co t: 0203 137 9791
Kind Regards,
The Team at London Accountants
