Companies House Filing Changes Delayed Until 2028 – What Small Business Owners Need to Know

The Government has announced that a number of changes to how companies file their accounts with Companies House have been delayed until April 2028.

If you run a limited company, there is no need to worry or take any action right now, but it is worth understanding what is changing and how it may affect you in the future.

Why Are These Changes Being Introduced?

The changes form part of the Government's wider efforts to improve the quality and reliability of information held by Companies House.

The aim is to make company records more accurate, increase transparency, help businesses make informed decisions, and make it harder for fraudsters and criminals to misuse UK companies.

What Will Change?

More Financial Information Will Be Submitted

At the moment, many small companies and micro-entities can file a simplified set of accounts with Companies House.

Under the new rules, small companies and micro-entities will need to also submit a Profit & Loss Account as part of their annual accounts.

The good news is that businesses will still have the option to prevent this information from being displayed publicly on the Companies House register.

For most business owners, this should not create much additional work, as the information is already included in the accounts prepared by their accountant.

Accounts Will Need to Be Filed Through Software

Companies House is moving away from manual filing methods.

In the future, all companies will need to file their annual accounts using approved accounting or accounts production software.

If you already use software such as Xero, QuickBooks, Sage, or work with an accountant who files your accounts electronically, you are unlikely to notice much difference.

Abridged Accounts Are Being Removed

The option to file abridged accounts will be removed.

Many small businesses may never have heard of abridged accounts, but if your company currently uses them, your accountant will need to prepare your accounts under the new filing requirements instead.

Stronger Audit Exemption Checks

Most small companies do not require an audit.

Going forward, companies claiming an audit exemption will need to make a stronger declaration confirming that they qualify for that exemption.

For the vast majority of small businesses, this is simply an additional compliance requirement rather than a major change.

Companies House Wants Complete Information

Companies will be required to submit all parts of their annual accounts together rather than in separate sections.

This is intended to improve the quality and consistency of information held on the register.

Fewer Changes to Accounting Periods

The Government will also reduce the number of times a company can shorten its accounting year.

For most businesses this is unlikely to have any impact, but it is another step towards improving the consistency and reliability of information held by Companies House.

One Piece of Good News

When these reforms were first announced, there were plans to require small companies to prepare and file a Directors' Report each year.

The Government has since decided not to proceed with this requirement.

This means small companies will not have any additional reporting obligations in this area.

When Will These Changes Start?

The reforms were originally expected to begin in April 2027.

The Government has now pushed the implementation date back to April 2028, giving businesses additional time to prepare.

In practice, most companies have around 21 months before the new rules take effect.

What Should You Do Now?

For most small businesses, the answer is simple: nothing yet.

If you already keep accurate records and work with an accountant, there is likely very little you need to do at this stage.

However, if your bookkeeping is still largely manual or spreadsheet-based, this may be a good opportunity to start thinking about moving to accounting software before the new filing requirements arrive.

Final Thoughts

For now, there is no need to panic or make any immediate changes.

The reforms are still some time away and, as with any significant change, there will no doubt be further guidance between now and 2028. I will continue to monitor developments and keep clients informed as more details become available.

If you have any questions in the meantime, feel free to drop me a message.

Useful Resources

You can read more about the planned Companies House reforms and implementation timetable on the Government website:
https://www.gov.uk/government/publications/economic-crime-and-corporate-transparency-act-outline-transition-plan-for-companies-house