The way companies file their annual accounts is changing. Companies House has confirmed that the main accounts filing reforms introduced under the Economic Crime and Corporate Transparency Act 2023 (ECCTA) will now come into force on 1 April 2028, giving businesses an additional year to prepare.
The changes will affect how annual accounts are prepared, submitted and, in some cases, what information must be provided to Companies House. Businesses that take steps now are likely to find the transition far smoother than those leaving preparations until the last minute.
Why Are These Changes Being Introduced?
The reforms form part of the government’s wider programme to modernise Companies House, improve the quality and reliability of information on the public register, and strengthen efforts to tackle fraud, economic crime and the misuse of corporate structures.
For businesses, this represents a significant shift. Companies House is moving towards a more digital, transparent and closely monitored system, with greater emphasis on the accuracy and completeness of information submitted by companies and their directors.
What Is Changing From 1 April 2028?
Several key reforms will come into force from April 2028.
Mandatory Software Filing for All Companies
One of the most significant changes is the move to software-only accounts filing.
From 1 April 2028, companies will be required to file annual accounts using commercial software in iXBRL format. This requirement applies whether accounts are filed directly by the company or through an accountant or professional agent. Companies House has also confirmed that paper filing and the current web-based accounts filing service for annual accounts will be withdrawn.
Many businesses already use accounting software, but that does not necessarily mean their statutory accounts can currently be prepared and submitted in the required format. Reviewing your software arrangements well before the deadline will be essential.
Small Companies and Micro-Entities Must File a Profit and Loss Account
From April 2028, small companies and micro-entities will be required to file a profit and loss account with Companies House. This marks a significant change for businesses that currently submit a reduced level of financial information.
However, filing a profit and loss account does not automatically mean it will be made available for public inspection.
Following industry feedback, the government has confirmed that qualifying small companies and micro-entities will be able to opt out of having their profit and loss account published on the public register. The information will still be accessible to Companies House, HMRC and relevant law enforcement bodies.
Details of the opt-out process have not yet been released, so businesses should continue to monitor official guidance as implementation approaches.
The End of Abridged Accounts
The option to file abridged accounts will be removed from April 2028.
Businesses currently relying on abridged accounts should discuss future reporting requirements with their accountant and review how accounts will be prepared under the new regime.
Stronger Audit Exemption Statements
Companies claiming an audit exemption will face additional requirements.
Directors will need to provide a strengthened eligibility statement confirming the specific audit exemption being claimed and that the company meets the relevant qualifying conditions.
This places greater responsibility on directors and reinforces the importance of reviewing eligibility each year rather than assuming an exemption will continue to apply.
Accounts Must Be Filed as a Complete Package
Companies House will require the relevant components of accounts and reports to be filed together as a complete package, helping to improve consistency and accuracy across the register.
Tighter Rules on Accounting Reference Periods
The reforms will also limit the ability of companies to repeatedly shorten their accounting reference period. Businesses considering a change to their year-end date should be aware of these tighter restrictions when planning ahead
What Do These Changes Mean for Directors?
These reforms are about far more than a change in filing methods.
They form part of the wider transformation of Companies House under the Economic Crime and Corporate Transparency Act 2023. Alongside measures such as identity verification requirements for directors and People with Significant Control (PSCs), Companies House is being given stronger powers to improve the accuracy and integrity of information held on the register.
For directors, this means greater accountability and a stronger focus on compliance.
Accurate financial records, effective internal controls and clear oversight of statutory filings will become increasingly important. Businesses operating with outdated systems or inconsistent record keeping may find it more challenging to meet their obligations under the new framework.
What should businesses do now?
Although implementation remains some time away, the additional year should be used wisely.
Review Your Current Filing Process
Ask yourself:
- How are annual accounts currently prepared?
- Do you rely on WebFiling, paper filing or manual processes?
- Is your existing software capable of producing iXBRL-compliant accounts?
- Will your current systems remain suitable after April 2028?
Identifying potential issues now will help avoid unnecessary disruption closer to the deadline.
Improve Financial Record Keeping
Strong compliance starts with accurate records.
Maintaining up-to-date bookkeeping, carrying out regular reconciliations and ensuring supporting documentation is organised will make year-end reporting significantly smoother and reduce the risk of errors.
Review Company Size and Audit Exemption Eligibility
As businesses grow and evolve, their reporting obligations may change.
Company size, group structures and ownership arrangements can all affect filing requirements and audit exemption eligibility. Regular reviews can help prevent compliance issues later on.
Speak to Your Accountant Early
The new profit and loss filing requirements and software filing obligations may affect businesses in different ways.
Seeking professional advice now can help you understand what changes may be required and ensure sufficient time is available to implement them properly.
Which Businesses Are Likely to Be Most Affected?
While all companies will need to adapt to software-only filing, the reforms are likely to have the greatest impact on:
- Small limited companies
- Micro-entities
- Owner-managed businesses
- Contractors operating through limited companies
- Companies currently filing abridged accounts
- Businesses that still rely on manual processes or paper-based records
For these organisations, early preparation could make a significant difference to both compliance and efficiency.
Why Businesses Should Start Preparing Now
April 2028 may seem a long way off, but major compliance changes have a habit of arriving sooner than expected.
Businesses that plan ahead can use the transition as an opportunity to modernise accounting processes, improve financial reporting and strengthen compliance procedures. Better systems often lead to fewer errors, smoother year-end processes and improved visibility over business performance.
Those who leave preparations until the final months are far more likely to encounter avoidable challenges.
The businesses best placed for success will be those that treat the additional preparation period as an opportunity rather than a postponement.
How The Infinity Group can help
At The Infinity Group, we provide professional accountancy services that help businesses maintain accurate financial records, meet their compliance obligations and stay up to date with changing regulations. From bookkeeping and VAT to year-end accounts, corporation tax and financial reporting, our team ensures your finances remain accurate, compliant and ready for growth.
With the right accountancy support, you can focus on running your business while we help keep your finances organised, compliant and up to date.
Frequently Asked Questions
When do the new Companies House filing reforms start?
The main accounts filing reforms are due to take effect from 1 April 2028. They were originally expected to commence in April 2027, giving businesses an additional year to prepare.
Have the Companies House filing reforms been cancelled?
No. The reforms have been delayed, not cancelled. The government has confirmed that the changes will proceed from April 2028.
Will all companies need commercial software to file annual accounts?
Yes. From April 2028, all companies will be required to file annual accounts using commercial software in iXBRL format, whether they file directly or through an accountant or agent.
Will small companies have to publish their profit and loss account?
Small companies and micro-entities will be required to file a profit and loss account with Companies House. However, qualifying businesses will be able to opt out of having this information published on the public register.
Are abridged accounts being abolished?
Yes. The option to file abridged accounts will be removed from 1 April 2028.
Will Companies House WebFiling close completely?
No. Paper and web-based filing routes for annual accounts will close, but Companies House online services will continue to be available for certain other filings, such as confirmation statements and changes to company information.
What should directors do before April 2028?
Directors should review how their accounts are currently prepared and filed, assess whether their software is suitable for the new requirements, maintain accurate financial records and seek professional advice where necessary to ensure ongoing compliance.