In a much-anticipated announcement, Companies House has confirmed changes to accounts-filing requirements that will take effect from April 2028.

Filing for small companies and micro entities

Small companies and micro-entities will be required to file their profit and loss account. However, in an important change to previous announcements, they will be able to opt out of having that information published on the public register. Details of how companies will be able to opt out is yet to be confirmed.

Following previous announcements that the requirement for any company to produce such a report is being removed under the government’s Modernising Corporate Reporting programme, small companies will not be required to file a directors’ report.

Filing must be through commercial software

The second major element of the announcement will see all UK-registered companies being required to file their accounts using commercial software.

Accounts will also need to be digitally tagged. This means they must be produced in Inline eXtensible Business Reporting Language (iXBRL) format.

Companies House has confirmed that its existing web and paper-based filing routes will be closed for accounts, however, web filing services for non-accounts filings (such as, confirmation statements and updates to director details) will remain available.

Further changes to accounts filing

Companies House also confirmed that several smaller changes will be introduced, including:

• The removal of the option for companies to file abridged accounts.
• A requirement for all companies claiming an audit exemption to provide a strengthened statement identifying the exemption being taken and confirming their eligibility to do so.
• A requirement for component parts of accounts and reports to be filed together.
• A reduction in the number of times a company can shorten its accounting reference period.
• Annotations on the public register where a company has not complied with a notice regarding compliance of its accounts with the Companies Act 2006.

Government listened to concerns

Introduced under the Economic Crime and Corporate Transparency Act 2023 (ECCTA ), these reforms aim to help improve the quality of information held on the register and support business decisions through increased transparency, accuracy and reliability.

The changes will also help authorities identify and tackle economic crime, as well as bring the UK’s practices in line with other countries.

ICAEW’s Corporate Reporting Director, Sally Baker, welcomed the announcement as providing much-needed clarity on the timing of accounts reform changes.

She said: “It’s right that small companies and micro-entities should continue to have the option to make their profit and loss account public on the grounds of commercial sensitivity, a point we’ve continually made to government.

"We’re pleased that our concerns have been recognised, and that government is striving to strike a fair balance between privacy and transparency, preserving commercial interests while ensuring Companies House and other enforcement agencies receive enough information to identify and tackle economic crime."

Accounts reform is the third and final major package of measures being introduced under ECCTA, behind Companies House being granted new and enhanced powers, and identity verification.

It had originally been announced that the accounts filing changes would take effect from 1 April 2027. Concerns raised by many smaller businesses and their advisors caused the government to take stock, with a subsequent communication in March that the planned changes had been paused. Since then, businesses and accountants have been waiting for clarification of when the changes would come into force.

Companies House will be contacting all companies via their registered email address to tell them about these changes and signpost available guidance.