Changes to accounts

Filing accounts by software only  

As part of our journey to modernise and digitise our filing routes, all accounts filings made on or after 1 April 2028 must be filed by commercial software in inline extensible Business Reporting Language (iXBRL) format.

From this date, our web and paper routes will be closed for accounts filings but will remain open for other statutory filings.

Read more about these changes on GOV.UK.

If you want to know more about iXBRL reporting, the Financial Reporting Council’s (FRC) Digital Reporting Education resource centre provides a range of practical support for businesses at all stages of their digital reporting journey.

This change will allow more efficient and secure filings for companies, and will be a critical step towards improving the quality of the data on the register. Software-only accounts filing will create a single, cost-effective, sustainable and traceable way to file. 

The legislation lays the foundation for Companies House to require companies to file accounts in a digital format. To comply with these changes, all companies will need to find a suitable software product before web-based and paper filing options are no longer available.  

This applies to companies that file accounts themselves, and companies that use third party agents or accountants to file their annual accounts. 

Most companies can make the change now as commercial software is already available.  There are many software providers who offer a range of accounting packages to prepare and file accounts – you can find software for filing company accounts.

Most types of accounts can be filed using software, depending on the functionality of the software package you’re using. 

Software-only filing supports our goal of a fully digital filing service and helps to meet our organisational priority to prevent economic crime and bring the UK in line with international best practice.

Changes to small company filing options

We’re streamlining the accounts filing options for small and micro-entity companies.  Small and micro entity companies will need to file a profit and loss as part of their annual accounts, as other companies do, but will be provided with the option to opt out of having these profit and loss accounts published on the public register.

By requiring small and micro-entity companies to file profit and loss accounts, Companies House, law enforcement and HMRC will have access to additional information to help identify and address economic crime.

We’ll confirm how small and micro entities can opt out of publication of profit and loss in due course.

Micro-entities will be required to file a copy of their balance sheet, auditor’s report (unless exempt) and profit and loss account. 

Small companies will be required to file a copy of their balance sheet, directors’ report, auditor’s report (unless exempt) and profit and loss account. 

Under the new legislation, small companies will also no longer be able to prepare and file ‘abridged’ accounts.

The Economic Crime and Corporate Transparency Act 2023 also amended the existing requirement for small companies to file a Directors’ Report. However, as part of the Government’s Modernising of Corporate Reporting programme, the Government announced that it intends to remove the requirement for any company to produce a Directors’ Report as part of their Annual Report and Accounts. We therefore expect this change will no longer apply as a result of the relevant regulations taking effect.

Claiming an audit exemption 

Any company claiming an audit exemption will need to give an enhanced statement from their directors on the balance sheet.  

Directors will need to specify which exemption is being claimed, and confirm that the company qualifies for the exemption.

Accounting reference periods

We are limiting how many times a company can shorten its accounting reference period.

A company will have to provide a business reason if they want to shorten the period more than once within 5 years.