Companies House accounts filing is changing from April 2028: what small businesses need to know

Changes are coming for small companies around how much information needs to be made public.  At the moment, can submit a balance sheet and the company’s delicates are hidden from view, as well as competitors.  After consultation, the Government is changing that.

 

What is changing?

The government has confirmed that changes under the Economic Crime and Corporate Transparency Act 2023 will go ahead from the 1 April 2028.

These reforms are designed to improve the quality and transparency of information held by Companies House, as well as help tackle fraud and economic crime.

For small companies and micro-entities, the main changes are:

• Small companies and micro-entities will need to file a profit and loss account with Companies House. At the moment, this is not needed.
• Companies will need to file annual accounts using commercial software.
• The Companies House web and paper routes for accounts filing will close.
• Small companies will no longer be able to file abridged accounts.
• There will be some other technical changes around filing and audit exemption statements.

The changes were originally expected to come in from April 2027, but this has now been pushed back to 1 April 2028.

 

What does this mean for small companies?

At the moment, many small companies and micro-entities can file reduced accounts with Companies House. This often means the public record shows very little detail about the company’s trading activity.

From April 2028, small companies and micro-entities will need to include a profit and loss account when filing their annual accounts.

Your profit and loss account shows income, expenses and profit for the year. In other words, it gives a clearer picture of how the business has performed.

This is a significant change for many small business owners, especially those who are used to filing very simple accounts themselves.

 

Will my profit and loss account be public?

This is the bit that caused a lot of concern when the changes were first announced.

The government has now confirmed that small companies and micro-entities will be able to opt out of having their profit and loss account published on the public register.

That means Companies House, HMRC and law enforcement bodies will still be able to access the information, but smaller companies should have the option to keep the profit and loss account away from public view.

The finer details of how this opt-out will work have not yet been confirmed. Companies House has said more guidance will follow.

So, for now, the important thing to know is:

Your company may still need to file a profit and loss account, but you should be able to choose whether it appears publicly.

 

Software-only filing

Another big change is that all companies will need to file accounts using commercial software from 1 April 2028.

This applies whether you file your own accounts or use an accountant or agent to file them for you.

From that date, Companies House will close its web and paper filing routes for accounts. These routes will still remain open for other statutory filings, such as confirmation statements and updates to director details, but not for annual accounts.

If you already use accounting software or your accountant files your accounts using software, this may not be a big change for you.

If you currently log into Companies House and file accounts manually through the web service, this is something you will need to prepare for.

 

Why is this happening?

The government wants company information to be more accurate, more useful and easier to analyse.

By requiring accounts to be filed digitally through software, Companies House will receive information in a more consistent format. This should make it easier to check, compare and use the data.

The requirement for more detailed accounts is also part of a wider effort to improve transparency and reduce misuse of companies.

 

When do the changes start?

The changes come into effect from 1 April 2028.

Companies House has described this as giving businesses 21 months to prepare. That is one full accounting year plus nine months.

That may sound like a long way off, but it is worth getting familiar with the changes now. It gives you time to check your current filing process, understand what type of accounts your company needs, and make sure you are ready before the deadline arrives.

 

What should you do now?

It is still worth checking you know:

• What type of accounts your company currently files.
• Whether your filing process will need to change.
• Whether your profit and loss account is likely to be published or opted out of publication.
• Whether you need to move onto accounting software before April 2028.

If you currently file your own accounts, you may need to do a little more preparation.

You will need to make sure you:

• Know what type of accounts your company should file.
• Have your company authentication code.
• Apply for a presenter account with Companies House, if needed.
• Choose suitable commercial software.
• Understand how the new filing process will work.
• Are ready to file using software from 1 April 2028.

 

Should you wait until 2028?

Not necessarily.

Although the deadline is not until April 2028, moving to a proper software-based process sooner can make life easier.

Good bookkeeping software can help you keep better records, understand your numbers throughout the year, and make accounts preparation much smoother when your year-end comes around.

It also means you will not be trying to get used to a new system at the last minute.

 

What if you are not sure what applies to you?

That is completely understandable. Company accounts can be confusing, and these changes add another layer to think about.

The main thing is not to ignore it.

If you are a Blue Leaf client, we will help you understand what the changes mean for your company and make sure you are ready before the new rules come in.

If you are not currently working with an accountant and you file your own accounts, this could be a good time to review whether that is still the best option for you.

The Companies House accounts filing changes are a big shift. For now, the best things you can do are:

• Check how your accounts are currently filed.
• Speak to us at Blue Leaf Accounting
• Consider whether you need accounting software.
• Keep an eye out for further guidance from Companies House.

And, as always, if you are not sure what it means for your business, ask for help sooner rather than later. It is much easier to plan ahead than to sort things in a rush when a deadline is looming.

Need help understanding what these changes mean for your limited company? Get in touch with Blue Leaf Accounting and we will help you get prepared.