Introduction to the Act
The Economic Crime and Corporate Transparency Act (ECCTA or ‘the Act’) received Royal Assent, and so became law, in October 2023. Together with the Economic Crime (Transparency and Enforcement) Act, which passed into law in March 2022, the two Acts bring in stronger powers to tackle money laundering and other illicit activity. This second Act also aims to support the economy by providing more, and better quality, information to inform business transactions and lending decisions.
The Act delivers:
- reforms to Companies House that will improve the quality of information on the company register, including changes to the preparation and filing of accounts and the introduction of identity verification for company directors and others;
- reforms to prevent the abuse of limited partnerships;
- additional powers to seize and recover crypto assets which are the proceeds of crime or associated with illicit activity;
- the creation of a ‘failure to prevent fraud’ criminal offence; and
- reforms to give businesses more confidence to share information in order to tackle money laundering and other economic crime.
This page considers the reforms to Companies House that impact the preparation and filing of financial information. Further information on other aspects of the Act can be found on ICAEW’s Economic Crime hub and in these articles:
Preparing and filing accounts
The reforms to the preparation and filing of accounts are designed to improve the quality and value of financial information on the UK companies register. The aim is to make Companies House fit for the future and better able to serve the needs of a 21st century economy, as well as to prevent abuse of the framework and instances of economic crime.
The key measures impacting the preparing and filing of accounts are set out below.
Simplifying filing obligations
The Act simplifies and streamlines the filing options available to small companies. Small companies will no longer have the option to prepare and file abridged accounts and will be required to file a profit and loss account with Companies House. However, there is an option to opt out of publishing the profit and loss account on the public register.
Micro-entities will similarly be required to file a profit and loss account, although they will also have the option to opt out of publication on the public register.
The government had previously announced that small companies would be required to file a directors' report with Companies House. However, it has since confirmed that the requirement to prepare a directors’ report will be removed for all companies as part of its Modernisation of Corporate Reporting programme.
Disclosure of profit and loss accounts for certain companies
Companies House announced in June 2026 that small companies and micro entities will be required to file profit and loss accounts with Companies House as other companies do, but with the option to opt out of publishing this information on the public register. Details of how companies will be able to opt out are yet to be confirmed.
Audit exemption statement
Under s475 of the Companies Act 2006 (CA 2006), a company’s annual accounts must be audited unless it is exempt under certain situations. To be entitled to these exemptions, a statement by the directors to that effect must be included on the balance sheet. The Act requires this statement to, additionally, identify the exemption being taken and include confirmation that the company qualifies to take it.
This statement applies to all companies claiming exemption from audit, including dormant companies.
Integrity of information
The Act removes Companies House’s existing, but limited, powers to correct documents that contain inconsistencies or appear incomplete but will instead grant it broader powers to verify the integrity of documents submitted. Any documents that are not consistent with information held by or available to the Registrar will be rejected if they cause the Registrar to doubt whether all requirements relating to its contents have been complied with. A document that is rejected would be treated as having not been delivered.
Facilitating electronic delivery
The CA 2006 already provided for the Registrar to specify the manner in which documents are delivered to Companies House (eg, hard copy or electronically). However, the power to require electronic delivery laid with the Government and required secondary legislation. To facilitate electronic delivery in the future, this authority has been transferred to the Registrar by amending s1068, CA 2006 and which now specifies that such requirements must by imposed by the means of registrar’s rules.
These powers have enabled Companies House to introduce software-only accounts filing from 1 April 2028. From that date, all UK registered companies will be required to file their accounts digitally in Inline eXtensible Business Reporting Language (iXBRL) format using commercial software. This requirement will apply whether accounts are filed directly by the company or through an agent or accountant. As a result, Companies House's web and paper-based accounts filing services will be withdrawn, although web filing will continue to be available for other filings, such as confirmation statements and changes to director details.
The Act also permits the Registrar to use registrar’s rules to require filings consisting of more than one document to be filed together. The government has subsequently confirmed that all component parts of accounts and reports required to be filed with Companies House must be submitted together.
Anticipated further changes
Section 468 of the CA 2006 gives the government a general power to make further provision about accounts through secondary legislation (such as statutory instruments). In June 2026, the government announced a number of accounts filing reforms, including:
- requiring small companies and micro-entities to file a profit and loss account with Companies House, with the option to opt out of publication on the public register;
- a reduction in the number of times a company can shorten its accounting reference period; and
- the introduction of register annotations where a company has failed to comply with a notice concerning whether its accounts meet the requirements of the Companies Act 2006.
An overarching ambition of the government, outlined in the original consultations, is to achieve a ‘file once with government’ approach, whereby companies would submit their financial information centrally only once each year, with the relevant information then being shared automatically with other government departments and agencies as required. Although there are currently no firm plans to implement such a system, the white paper indicated that options to facilitate this approach would be explored.
Effective date and next steps
While the Act has been passed into law, many of the measures are being implemented through secondary legislation. Implementation involves a significant programme of work and is being phased-in over several years.
The first changes under the Act - providing Companies House with new and enhanced powers - came into effect from 4 March 2024. Mandatory identity verification for those setting up, running or controlling companies commenced from 18 November 2025. The government has announced a package of accounts filing reforms that will take effect from 1 April 2028. As discussed above, these include new requirements for small companies and micro-entities to file a profit and loss account, mandatory software filing of accounts, the removal of abridged accounts and the requirement for all component parts of accounts and reports to be filed together.
ICAEW will continue to monitor developments closely and update members as further information becomes available.
Background to the act
The ECCTA was introduced to Parliament in September 2022 in the form of the Economic Crime and Corporate Transparency Bill (the Bill). Preceding the Bill, was the UK Government’s February 2022 Corporate Transparency and Register Reform White Paper, which contained the government’s response to consultations on the powers of the Registrar, implementing the ban on corporate directors, and improving the quality of financial information on the UK companies register. The Act brings in many, although not all, of the reforms originally set out in the White Paper.
