Companies House has announced that planned changes to annual accounts filing have been delayed until April 2028, giving UK businesses an additional year to prepare for the new requirements.

The reforms are being introduced as part of the Economic Crime and Corporate Transparency Act 2023, which aims to improve the quality of information held on the Companies House register while helping to tackle economic crime.

Although the deadline has been extended, businesses should use the extra time to understand what is changing and ensure they are ready before the new rules take effect.

What is changing?

One of the biggest changes is that all companies will be required to file their annual accounts using commercial software.

From April 2028, Companies House will no longer accept paper or web-based accounts filings. Instead, accounts must be submitted electronically in Inline eXtensible Business Reporting Language (iXBRL) format using compatible software.

This brings Companies House filing in line with the wider move towards digital reporting, similar to the introduction of Making Tax Digital.

Changes for small companies and micro-entities

Small companies and micro-entities will also see changes to the information they need to submit.

Under the new rules, they will be required to file a profit and loss account alongside their annual accounts. However, Companies House has confirmed that businesses will be able to choose not to publish this information on the public register, helping to balance greater transparency with commercial privacy.

Other important changes

The reforms also introduce several additional requirements, including:

• The removal of the option to file abridged accounts.
• Tighter restrictions on how often a company can shorten its accounting reference period.
• A stronger eligibility statement for companies claiming an audit exemption.
• A requirement for all parts of the accounts and reports to be filed together rather than separately.

These measures are designed to improve the accuracy and consistency of information held by Companies House.

What should businesses do now?

Although April 2028 may seem some way off, it's worth using the additional preparation time wisely.

If you currently file accounts using Companies House's web filing service or paper forms, you'll need to move to commercial software before the deadline. Businesses should also review their existing accounting processes to ensure they will meet the new filing requirements.

For many companies, particularly smaller businesses, these changes may increase administration and software costs. Planning ahead can help minimise disruption when the new rules come into force.

How Quove can help

Preparing for regulatory changes doesn't have to be complicated.

Whether you're already using cloud accounting software or need advice on choosing the right solution, the Quove team can help ensure your business is ready well before the April 2028 deadline.

If you have any questions about the upcoming Companies House changes or how they'll affect your business, get in touch with us today.

Categories: Insights