UK Companies House Changes: Accounting & Financial Reporting Obligations

Companies House has confirmed how the accounts reforms under the Economic Crime and Corporate Transparency Act 2023 will be implemented. Small companies and micro-entities will need to file profit and loss statements, all companies will move to software only filing, and the changes have been pushed back to give businesses more time to prepare.

What's changing

Following engagement with stakeholders, the UK government has confirmed it will proceed with the accounts reforms, including:

• Profit and loss statements for all -  small companies and micro-entities will now be required to file profit and loss statements with Companies House, in the same way as medium and large companies already do.

• Option to opt out of publication - while profit and loss statements must be filed, small companies and micro-entities will be able to opt out of having this information published on the public register. Details of how this opt out will work are still to be confirmed.

• Software only filing - all UK registered companies will be required to file their accounts in Inline eXtensible Business Reporting Language (iXBRL) format using commercial software. Companies House's web and paper based filing systems will close for accounts filings from this date.

• No more abridged accounts - the option for small companies to file abridged accounts is being removed.

• Strengthened audit exemption statement - companies claiming an audit exemption will need to provide a more robust eligibility statement.

• Single filing - all component parts of a company's accounts and reports will need to be filed together, rather in stages.

• Fewer accounting period end changes - the number of times a company can shorten its accounting period will be reduced.

  
  

Why the change

The reforms are intended to improve the transparency, accuracy and reliability of the information on the companies register, support better informed business decisions, bring UK practice in line with other countries, and help tackle economic crime.

The ability to opt out of publishing profit and loss information is designed to balance this against concerns from businesses and investors about the commercial sensitivity of disclosing this data.

Even where a company opts out of publication, Companies House, HMRC and law enforcement will still have access to the underlying information.

When it takes effect

The reforms were originally due to start in April 2027 but have now been pushed back to April 2028, giving companies one full accounting year plus nine months (21 months in total) to prepare.

Companies House has said it will write to all companies at their registered email address to explain the changes and point them to further guidance.

It's worth noting that Companies House's web filing services will remain available for non accounts filings, such as confirmation statements and updates to director details. The changes apply specifically to accounts filing.

Key deadlines at a glance

Change	Effective from
Profit and loss statements required for small companies and micro-entities	April 2028
Software only iXBRL accounts filing for all companies	April 2028
Abridged accounts no longer available	April 2028
Web and paper accounts filing closed	April 2028

How we can help

These reforms mean every UK company will need to review how its accounts are prepared and filed over the next 21 months. We provide a focused accounting and financial reporting service for UK companies, and we're already helping clients plan ahead of the April 2028 changes:

• Bookkeeping — accurate records maintained throughout the year, so your accounts are ready to file however the rules change.

• Preparation of annual financial statements — under FRS or IFRS, tailored to your size and circumstances, including profit and loss statements for companies that haven't previously had to prepare them.

• Transition to software only filing — helping you move to compatible commercial software well ahead of the deadline.

• Audit exemption review — helping you assess whether you still qualify for audit exemption under the strengthened eligibility requirements.

  
  

If you'd like to understand what these changes mean for your company, or want a hand planning ahead of April 2028, we'd love to hear from you.

Please reach out to paul.young@anomalyinternational.com for further information on how we can help.

*Please note that this article is intended as a general guide only and should not be relied upon as legal or professional advice. Deadlines and requirements are subject to change and we recommend seeking tailored advice for your specific circumstances.