Companies House accounts filing changes from April 2028: what UK businesses need to know

From 1 April 2028, UK companies will face significant changes to the way they file their annual accounts with Companies House, and to the information they are required to report.

The reforms set out in the Economic Crime and Corporate Transparency (ECCT) Act 2023 are designed to improve the transparency, accuracy and reliability of information held on the companies register, and to help tackle economic crime while also modernising the filing process.

The changes were originally scheduled for April 2027 but, following engagement with stakeholders, the government has deferred the implementation date to give companies more time to prepare.

For many small companies and micro-entities, the most important changes will be the move to software-only filing and the requirement to file profit and loss accounts with Companies House.

The headline news is the exemption announced to allow small and micro entities to opt out of filing their profit and loss account on public record, whilst the process for doing so is not yet clear this will be welcome news for many business owners.

What is changing?

The following are the key reforms that will apply to accounts filed on or after 1 April 2028:

• Software-only filing: all companies will need to file their annual accounts using commercial software. Web and paper filing routes will no longer be available.
• Profit and loss (P&L) accounts for small companies and micro-entities: small companies and micro-entities will need to file a P&L account as part of their annual accounts but will be able to opt out of having this published on the public register.
• Abridged accounts removed: the option to file abridged accounts will be withdrawn.
• Stronger audit exemption statements: companies claiming an audit exemption will need to provide a strengthened eligibility statement.
• Accounts and reports filed together: all component parts of the accounts and reports will need to be filed together.
• Restrictions on shortening accounting reference periods: there will be limits on how often a company can shorten its accounting reference period.

Software-only accounts filing

One of the biggest practical changes is that all company accounts will need to be filed digitally, in iXRBL format, using commercial software. This enables financial information to be digitally tagged and processed more consistently.

If you are currently filing accounts directly through the Companies House web service, or by paper, you will need to change your processes in order to meet the new filing requirements.

Businesses that already use accounting software, or whose accountant files accounts on their behalf using software, may already be part way there, but it is still worth checking that what you have in place will enable you to comply.

What will small companies and micro-entities need to file from 1 April 2028?

Small companies and micro-entities will need to file a P&L account with Companies House, which represents a major change for businesses that have previously filed reduced or “filleted” accounts.

However, the government has confirmed an important concession: small companies and micro-entities will be able to opt out of having their P&L account published on the public register, though the process for opting out is still to be confirmed.

Worth noting is that despite opting not to publish publicly, the information will still be filed with Companies House and made available to the relevant authorities.

What should businesses do now?

With the time available to them, businesses should review their existing accounting and filing processes, to ensure they are prepared in advance of the new rules taking effect.

Practical steps include:

• checking whether your current accounts software will support Companies House filing in the required format;
• speaking to your accountant about how the changes will affect your year-end accounts process;
• reviewing whether your company is likely to qualify as small or micro-entity under the relevant thresholds;
• considering whether you may want to opt out of public profit and loss publication once the process is confirmed;
• making sure your records are complete, accurate and kept up to date throughout the year; and
• avoiding last-minute filing pressures by allowing enough time for software setup, account preparation and review.

How we can help

These reforms will affect all UK companies, but the practical impact will vary depending on how your accounts are currently prepared and filed.

Taking action early will help ensure your business is ready for the move to software-only filing and the new Companies House reporting requirements from April 2028.

To talk to one of our team about what the changes mean for your business, or for help to review your position and plan ahead, please contact us.