Changes to UK Company Accounts Filing What You Need to Know

What is changing and why?

The Economic Crime and Corporate Transparency Act 2023 introduced a package of reforms designed to improve transparency and crack down on economic crime. One of the most significant practical changes coming out of this legislation affects how companies file their annual accounts with Companies House.

From 1 April 2028, all accounts must be filed using commercial software in iXBRL (inline extensible Business Reporting Language) format. The existing web-based filing service and paper filing routes will both be closed for accounts — though they will remain available for other statutory filings.

The goal is to create a single, consistent, and traceable method of filing that improves the quality and accuracy of data held on the Companies House register. It also brings the UK in line with international best practice and supports the wider aim of preventing economic crime.

Why is software-only filing being introduced?

Software-only filing has been designed to:

• Improve the quality and consistency of financial data on the public register.

• Create a more efficient and secure filing process for companies.

• Help Companies House, HMRC, and law enforcement identify irregularities and address economic crime.

• Move towards a fully digital filing service that is cost-effective and sustainable.

• Bring the UK in line with international standards for digital financial reporting.

Who is affected?

This change applies to all companies that file accounts with Companies House — whether they file themselves or use a third-party agent or accountant. If your accountant handles your filings, it is worth checking with them now to understand how they plan to make the transition.

Most companies can make the switch immediately, as compatible commercial software is already available from a range of software providers .

Changes to small company and micro-entity filing options

Alongside the move to software-only filing, the legislation also introduces changes to what small companies and micro-entities are required to file.

Previously, small and micro-entity companies had more limited filing requirements than larger businesses. Under the new rules:

Micro-entities will be required to file:

• A copy of their balance sheet

• A profit and loss account

Small companies will be required to file:

• A copy of their balance sheet

• A directors' report

• An auditor's report (unless exempt)

• A profit and loss account

Abridged accounts — a simplified format previously available to small companies will no longer be permitted under the new legislation.

Importantly, small and micro-entity companies will have the option to opt out of having their profit and loss account published on the public register, though they will still be required to file it with Companies House. This means the information remains available to Companies House, HMRC, and law enforcement, without necessarily being visible to the general public. Further details on how to opt out of publication will be confirmed in due course.

It is also worth noting that the Government has signalled its intention to remove the requirement for companies to produce a Directors' Report as part of its Modernising Corporate Reporting programme. This may remove the new Directors' Report requirement for small companies before it takes effect.

Claiming an audit exemption

If your company claims an audit exemption, there will be a change to the directors' statement required on the balance sheet. Directors will need to:

• Specify which exemption is being claimed.

• Confirm that the company qualifies for that exemption.

This is an enhancement of the existing requirement and is designed to make it clearer when and why an audit exemption is being applied.

Changes to accounting reference periods

Companies House is also tightening the rules around shortening accounting reference periods. Under the new rules, if a company wants to shorten its accounting reference period more than once within any five-year window, it will need to provide a valid business reason for doing so.

This change is aimed at preventing the manipulation of accounting periods as a way of obscuring financial information or delaying filing obligations.

Key dates and what to do now

Companies have until April 2028 — giving around 21 months to prepare from when the changes were confirmed. That said, it makes sense to act early rather than leave the transition to the last minute.

Here is what you can do now:

1. Check whether your existing software is compatible — speak to your software provider or accountant to confirm your current tools will support iXBRL filing.

2. Find suitable software — if you do not already use accounting software, the Government's website provides a list of approved software for filing company accounts.

3. Speak to your accountant — if a third party handles your accounts filing, check how they are planning for the change and whether any action is needed on your part.

4. Review your filing requirements — if you are a small company or micro-entity, take time to understand what you will need to file from April 2028 and whether you may want to opt out of profit and loss publication.

Conclusion

The changes to company accounts filing are a significant step in the modernisation of the UK's corporate reporting system. While the move to software-only filing may feel like an adjustment, the good news is that compatible software is already widely available and most businesses will find the transition straightforward with a little forward planning.

By understanding what is changing and taking steps now to ensure you have the right software and processes in place, you can avoid any last-minute pressure and ensure your company remains compliant when the new rules come into force in April 2028.