Major Changes Coming to Small Company Accounts Filing – Are You Ready?
Small companies and micro-entities will soon face the biggest change to Companies House accounts filing requirements in many years. Following confirmation from the government in June 2026, new rules introduced under the Economic Crime and Corporate Transparency Act 2023 (ECCT Act) will take effect from April 2028.
These reforms are designed to improve the quality, transparency and reliability of information held at Companies House, while helping government agencies tackle fraud and economic crime.
The Key Change: Profit and Loss Accounts Will Need to Be Filed
Currently, many small companies and micro-entities can file abridged information at Companies House without submitting a profit and loss account.
From April 2028, that will change.
Under the new rules:
Small companies will be required to file a profit and loss account.
Micro-entities will also be required to file a profit and loss account.
The option to file abridged accounts will be removed.
This means Companies House will receive significantly more financial information than it currently does from smaller businesses.
Will My Profit and Loss Account Be Public?
The government has addressed concerns raised by the business community regarding commercial confidentiality.
While small companies and micro-entities will be required to submit their profit and loss accounts to Companies House, they will be given the option to opt out of public disclosure of that information. Companies House, HMRC and law enforcement agencies will still have access to the data, but businesses may be able to prevent it appearing on the public register. Further details on the opt-out process are expected in due course.
This represents a significant shift from earlier proposals, which would have made the information publicly available.
Why Are These Changes Being Introduced?
The government believes that increasing the amount of financial information available to Companies House will help:
Improve the accuracy and reliability of the Companies House register.
Support better business decision-making by creditors, suppliers and lenders.
Reduce opportunities for fraudulent activity.
Assist HMRC and law enforcement agencies in identifying economic crime.
Modernise the UK's corporate reporting framework.
Companies House has previously highlighted concerns that the limited information currently filed by some small companies can make it difficult to identify suspicious activity or assess the true financial position of a business.
Software Filing Will Become Mandatory
Another major change is that all companies will be required to file their annual accounts using commercial software.
From April 2028:
Paper filing of accounts will end.
The Companies House web-filing option for accounts will close.
Accounts must be submitted digitally using approved software.
Accounts will generally need to be filed in iXBRL (digitally tagged) format.
Most businesses already use accounting software or engage accountants who do, but companies that currently prepare and submit accounts manually will need to plan ahead.
Other Changes to Be Aware Of
The reforms also include:
Removal of abridged accounts filing.
Stronger eligibility statements where audit exemption is claimed.
Requirements for accounts and supporting reports to be filed together.
Restrictions on shortening accounting reference periods.
What Should Small Companies Do Now?
Although the changes do not take effect until April 2028, businesses should begin preparing now.
Consider:
Reviewing your accounting systems.
Ensuring your bookkeeping records are accurate and complete.
Moving towards software-based accounting if you have not already done so.
Understanding what information may need to be disclosed in future filings.
Discussing the implications with your accountant.
Final Thoughts
For many small businesses, filing abbreviated information at Companies House has long been the norm. The forthcoming reforms mark a significant move towards greater transparency and digital reporting.
While the ability to opt out of public publication of profit and loss accounts will be welcomed by many business owners, the requirement to file this information with Companies House represents a fundamental change in reporting obligations.
With less than two years before implementation, now is the ideal time to review your systems and ensure you are prepared for the new era of Companies House reporting.
