Following a lengthy wait, the Government has set out how the Economic Crime and Corporate Transparency Act 2023 will reshape the way small companies file their accounts with Companies House.
The changes come into force on 1 April 2028 and apply to small companies and micro-entities across the UK.
Profit and loss accounts become mandatory
For the first time, small companies and micro-entities will need to submit both a balance sheet and a profit and loss account to Companies House.
After sustained pushback from business groups, however, ministers have abandoned the original plan to publish this information on the public register in full. Companies will instead have the option to opt out of publication, keeping their financial details away from public view.
Companies House has recognised that full disclosure could have exposed smaller businesses to real privacy and commercial risks. The mechanics of the opt-out have not yet been set out, though more guidance is due in the coming months.
The opt-out affects public visibility only. HMRC, Companies House and law enforcement bodies will retain access to the underlying data for investigating fraud and financial misconduct.
Abridged accounts are being phased out
Filing abridged accounts, which required shareholder sign-off and allowed figures to be grouped into broader categories, will no longer be permitted.
Given how often this option frustrated smaller businesses, few are likely to miss it.
A new software requirement
Starting in April 2028, every UK-registered company will be required to submit annual accounts through commercial software built to the Inline eXtensible Business Reporting Language (iXBRL) standard, regardless of whether the filing is done in-house or through an accountant.
At the same point, the existing web and paper filing routes for accounts will be retired. Other Companies House functions, including confirmation statements and updates to director details, will continue to be available online as normal.
Further changes on the way
Companies will also need to submit every part of their accounts and reports as a single filing rather than in separate pieces.
A tightened eligibility statement will apply to any company claiming an audit exemption. Companies House has also confirmed plans to cap how often a business can shorten its accounting reference period, although this change depends on secondary legislation being passed first.
The timeline is tighter than it seems
That leaves roughly 21 months to prepare, equivalent to one full accounting period plus around nine more.
Firms still relying on paper or web-based filing, in particular, should expect the move to iXBRL-ready software to take real planning and lead time.
If you would like support getting ready for the April 2028 changes, get in touch with our team.
