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, the way you file your annual accounts with Companies House is changing.
We’ll soon be transitioning towards filing accounts by software only. This will allow more efficient and secure filings for companies, and will improve 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 suitable software 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’ll share the timetable for the roll-out of software-only filing soon.
Most companies 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.
Most types of accounts can be filed using software, depending on the functionality of the software package you’re using. We’re working with software companies to develop a solution for complex package accounts, which are currently filed on paper.
Software-only filing supports the 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 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.