What do I need to know about Companies House accounts filing changes ahead of April 2028?
Companies House has announced an important update to its planned changes to company accounts filing, bringing some welcome news for small businesses and micro-entities.
The changes form part of the programme to modernise Companies House under the Economic Crime and Corporate Transparency Act 2023, with several reforms due to take effect from April 2028.
Good news for small companies and micro-entities
One of the most significant changes is that the Government has paused plans to require small companies and micro-entities to file their profit and loss (P&L) accounts publicly with Companies House from April 2028.
Following feedback from the Small Business Regulatory Taskforce, the Government has decided to explore alternative ways of simplifying the filing process and reducing the administrative burden on smaller businesses.
In practical terms, this means eligible small companies and micro-entities will retain the option to file abridged accounts and 'filleted' accounts, allowing them to keep their profit and loss information off the public register.
This will be welcome news for businesses concerned about making commercially sensitive financial information publicly available.
However, it is important to remember that this is a pause rather than a permanent cancellation of the proposed requirement.
Mandatory software filing is still going ahead
While the P&L filing requirement has been paused, another major change is still proceeding as planned.
From April 2028, companies will no longer be able to use the existing Companies House web-based or paper filing services to submit their accounts. All UK registered companies will be required to file their accounts using commercial software in what is known as iXBRL format.
If that means nothing to you, don't worry. We have the technology to take care of this for you!
Companies House web filing will remain available for other submissions, such as confirmation statements and updates to director details.
Other changes to be aware of
Several other reforms are also scheduled for April 2028, including:
Stronger audit exemption statements: Companies claiming an audit exemption will need to provide a strengthened statement confirming their eligibility.
Filing complete accounts together: All components of a company's accounts and reports will need to be submitted together.
Restrictions on accounting reference periods: There will be limits on how frequently companies can shorten their accounting reference periods.
How can we help?
The latest announcement brings some welcome relief for smaller businesses, but mandatory software filing remains a significant change that all UK registered companies will need to prepare for.
There is still time to prepare, and we will continue to monitor developments and keep clients informed as further guidance becomes available.
If you have any questions about how these changes may affect your business, please get in touch with our team.
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