Companies House confirms 2028 accounts filing changes

Companies House has begun emailing directors to confirm the details of long-delayed reforms to annual accounts filing.

The changes will now take effect from 1 April 2028, a year later than originally planned, and bring clarity to two questions that have unsettled small businesses since the reforms were first proposed last year.

Small companies and micro-entities will still have to file profit and loss accounts, although they will be able to keep those figures off the public register.

At the same time, Companies House will stop accepting paper accounts and close its existing web filing service. All future accounts will be filed via commercial accounting software.

Here, Michael McCullion, Managing Director of Bright Ideas Accountancy, looks at the latest Companies House announcement and explains what the reforms will mean for small companies, micro-entities and their directors.

Previous announcements

The proposals originated in the Economic Crime and Corporate Transparency Act 2023, which set an original implementation date of April 2027.

They drew sustained criticism from accountants, business groups and company owners, principally over the requirement to file full profit and loss accounts and the prospect that this financial detail would become publicly accessible.

In response, the government paused implementation last year to conduct further consultation, although this was not confirmed officially, leaving considerable ambiguity.

Some commentators took it to mean a straightforward delay, while others assumed the more contentious elements, particularly publication of profit and loss data, might be abandoned altogether.

In the end, we now know that the reform is going ahead, but on terms which are more palatable to businesses.

Profit and loss filing will be mandatory

The requirement for small companies and micro-entities to file profit and loss accounts has survived the consultation process intact.

From 1 April 2028, these companies will need to submit profit and loss information to Companies House, in addition to the balance sheet information many currently file.

This is a change to the paperwork that needs to be submitted, rather than to what accountants have to prepare for the annual accounts.

P&L figures are already produced as part of a company’s annual accounts, and submitted to HMRC for Corporation Tax purposes.

The difference now is that Companies House will receive this information directly, whereas previously many smaller companies were not required to disclose it in this form.

Government reverses public disclosure plan

The element of the original proposals that generated the most concern was the assumption that profit and loss accounts would be placed on the public register, visible to competitors, customers and suppliers alike.

This is where the government has revised its position.

Small companies and micro-entities will still be required to file profit and loss accounts, but will have the option to opt out of having that information published.

Companies House, HMRC and relevant enforcement bodies will continue to receive the full figures regardless of how a company exercises this option.

Companies House has indicated that further detail on the mechanics of the opt-out will be published ahead of implementation.

Filing will move entirely to commercial software

A second, less widely reported change concerns the method of filing rather than its content. From April 2028:

• Paper accounts will no longer be accepted.
• The Companies House web filing service for accounts will be withdrawn.
• All accounts must be submitted using commercial filing software.

For many businesses, this change will barely be noticeable because their accountant already files accounts using commercial software.

The change will have a greater practical impact on directors who currently prepare and submit accounts themselves using Companies House’s digital services, since those services are being retired.

Recommended next steps

The implementation date has been moved from April 2027 to April 2028, giving businesses a full accounting year and an additional 9 months to prepare.

Companies House suggests that businesses begin preparing in good time rather than waiting until the deadline approaches. Directors who do not currently file through software may wish to:

• Confirm what type of accounts their company is required to file.
• Locate and verify their company authentication code.
• Apply for a presenter account, if one is not already held.
• Research filing software appropriate to the size and structure of the company.
• Discuss the transition with their accountant or software provider, where relevant.

For businesses that already file electronically through an accountant, this is unlikely to be a major issue. However, it is still worth asking how the new requirements will affect your filing process.

The official announcement is available on GOV.UK.