Companies House filing changes: What small businesses need to know

If you run a limited company, there are some important changes to the way annual accounts will be filed with Companies House over the next couple of years.

The changes do not take effect until April 2028, so there is plenty of time to prepare. Even so, understanding what is coming can help you plan ahead and avoid any surprises.

The reforms form part of the Economic Crime and Corporate Transparency Act 2023 and are designed to modernise the UK company register, improve the quality of financial information and strengthen measures against fraud and economic crime.

Why are Companies House changing the rules?

Companies House has been gradually introducing reforms aimed at improving the reliability of the information held on the public register.

The government says the new accounts filing requirements will:

• Improve the transparency, accuracy and reliability of company information

• Help businesses, lenders and investors make better-informed decisions

• Modernise UK filing practices in line with international standards

• Support efforts to tackle fraud, economic crime and tax evasion

Following consultation with businesses, accountants and software providers, the government has confirmed that the reforms will begin from 1 April 2028. The original implementation date was April 2027, although this has been delayed to give companies more time to prepare.

In practice, businesses will have around 21 months to get ready from the date the changes were announced.

What is changing?

Annual accounts will need to be filed using commercial software

One of the biggest changes is that annual accounts will no longer be filed through the Companies House web service or on paper.

Instead, every UK-registered company will submit its accounts using compatible commercial software in Inline eXtensible Business Reporting Language (iXBRL) format.

If you already use accounting software and your accountant files your accounts electronically, this change is likely to feel quite straightforward. Companies that currently prepare and file accounts themselves through the Companies House online service may need to move to suitable software before April 2028.

Other Companies House services, including filing confirmation statements or updating director information, will continue to be available online.

Small companies and micro-entities will file profit and loss accounts

At the moment, many small companies and micro-entities do not submit a profit and loss account to Companies House.

From April 2028, these businesses will also need to file a profit and loss account as part of their annual accounts.

ℹ️ What is a micro-entity?

A micro-entity is the smallest category of limited company under UK accounting rules. A company usually qualifies as a micro-entity if it meets at least two of these conditions: a turnover of £1 million or less, assets worth £500,000 or less, and 10 employees or fewer.

ℹ️ What is a small company?

A small company is a limited company that is larger than a micro-entity but still qualifies for simplified accounting rules. A company usually qualifies as a small company if it meets at least two of these conditions: a turnover of £15 million or less, assets worth £7.5 million or less, and 50 employees or fewer.

The government has recognised that smaller businesses raised concerns about commercially sensitive financial information becoming publicly available. To address this, companies will be able to opt out of having their profit and loss account published on the public register. Full details of how this process will work are expected closer to implementation.

Even where publication is not chosen, Companies House, HMRC and law enforcement agencies will still have access to the information where appropriate.

Abridged accounts will be withdrawn

The option to file abridged accounts will be removed. Companies currently using this approach will need to prepare and submit the required full set of accounts under the new rules.

ℹ️ What are abridged accounts?

Abridged accounts are a shortened version of a company's annual accounts that eligible small companies have been able to file with Companies House. They contain less financial detail than a full set of accounts because some information is combined or left out. The option was introduced to simplify reporting for smaller businesses and reduce the amount of financial information placed on the public record.

Accounts will be submitted as one complete package

Companies will also be required to submit all parts of their accounts and any accompanying reports together, creating a single, complete filing.

Changes to audit exemption and accounting reference periods

There are also some technical changes, including a strengthened eligibility statement for companies claiming an audit exemption and tighter limits on how often a company can shorten its accounting reference period.

These changes are unlikely to affect the day-to-day running of most small businesses, although they will become part of the standard annual filing process.

Will this increase costs?

Some business organisations and professional bodies have suggested that mandatory software filing may increase costs for companies that currently rely on free filing methods or manual processes.

For many businesses already working with an accountant or bookkeeper, the impact is expected to be relatively limited because digital filing is already part of the annual accounts process. Businesses preparing and submitting their own accounts may need to budget for compatible software or professional support before the new rules take effect.

The government has delayed implementation until 2028, specifically to allow businesses time to prepare for the transition.

Do you need to do anything now?

For most companies, there is no immediate action required. If your accounts are prepared by an accountant, they will already be aware of the changes and will make sure your filing process meets the new requirements before the deadline.

If you prepare and file your own accounts, this is a good opportunity to become familiar with the upcoming changes and consider whether your current processes will continue to meet the new requirements.

Companies House will also contact registered companies directly with guidance as the implementation date approaches.

Preparing for the Companies House changes

Although April 2028 may feel a long way off, these reforms represent one of the biggest updates to Companies House accounts filing in recent years.

The aim is to improve the quality of information held on the company register while supporting a more modern, fully digital filing system. Thanks to the extended preparation period, businesses have plenty of time to adapt before the changes take effect.

If you have any questions about how these changes could affect your business, or you would like support with your bookkeeping, accounts or Companies House filings, our team is always happy to help. Get in touch with us here.