The government has delayed the introduction of major company accounts filing reforms until April 2028, giving businesses an additional year to prepare for changes aimed at improving corporate transparency and tackling economic crime.
Announced on Tuesday (9 June), the reforms form part of the implementation of the Economic Crime and Corporate Transparency Act 2023 (ECCT Act 2023), which will significantly alter how companies submit annual accounts to Companies House.
The government said the measures are designed to improve the transparency, accuracy and reliability of information held on the companies register, support better business decision-making, modernise reporting practices and help combat fraud, economic crime and tax evasion.
Following consultation with stakeholders, the government confirmed it will proceed with a package of reforms that includes requiring small companies and micro-entities to file profit and loss accounts with Companies House, ending the option to submit abridged accounts and strengthening audit exemption eligibility statements.
Companies will also be required to submit all elements of their annual accounts and reports together, while restrictions will be introduced on how often businesses can shorten their accounting reference period.
Perhaps the most significant operational change will be the move to mandatory software-only filing. From April 2028, all UK registered companies will be required to file annual accounts in Inline eXtensible Business Reporting Language (iXBRL) format using commercial software. Companies House will close its web-based and paper accounts filing services from that date, although online services for other filings, such as confirmation statements and director updates, will remain available.
The government said the revised implementation timetable would provide companies with one full accounting year plus nine months – a total of 21 months – to prepare for the changes.
In a move designed to address concerns raised by smaller businesses, companies classified as small or micro-entities will be able to opt out of publishing their profit and loss accounts on the public register, despite still being required to file them with Companies House.
The government said the exemption balances the need for greater transparency with concerns about privacy and commercial sensitivity. Details of how companies can exercise the opt-out will be published later.
Even where profit and loss accounts are not publicly available, the information will remain accessible to Companies House, HM Revenue & Customs and law enforcement agencies to support efforts to identify fraud, economic crime and tax evasion.
The government said it will contact companies through their registered email addresses to explain the reforms and direct them to guidance and software options ahead of the transition.
See the guidance on using software to file with Companies House to understand the changes and prepare for the move.