Changes to accounts
The measures set out in the Economic Crime and Corporate Transparency Act will improve transparency by making more financial information available to the public.
Filing accounts by software only
As part of our journey to modernise and digitise our filing routes, we’ll be transitioning towards filing accounts by software only.
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 new 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 directors who file accounts themselves, and companies who use third party agents or accountants to file their annual accounts.
The move to filing accounts by software only will be phased in over the next 2 to 3 years. We’re preparing a timetable for the roll-out of software-only filing, and we’ll make sure all companies are provided with an extensive notice period ahead of the changes coming in.
Most companies, however, can make the change now as 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 documents.
Most types of accounts can be filed using software, depending on the functionality of the software package you’re using. We’ll soon introduce a digital solution for complex package accounts, which are currently filed on paper.
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.
Read more about software-only filing.
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 their profit and loss accounts. The detail of what they will need to include will be set out in secondary legislation. Small companies that do not qualify as micro entities will also need to file a directors’ report.
We’re also removing the option to file ‘abridged’ accounts.
Claiming an audit exemption
Any company claiming an audit exemption will need to give an additional 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.
Read about changes to small company accounts filing options and find out more about the measures in the Economic Crime and Corporate Transparency Bill factsheet.