Thousands of UK businesses will face new accounts filing requirements from April 2028 as Companies House introduces major reforms designed to improve transparency and tackle economic crime.
If you run a limited company, the changes could affect how you prepare your accounts, what information you need to submit, and the software you use to file with Companies House.
While the deadline may seem some way off, understanding what’s changing now can help your business prepare and avoid future compliance headaches.
Why Is Companies House Changing the Rules?
The reforms are part of the government’s wider Economic Crime and Corporate Transparency Act, which aims to improve the quality of information held at Companies House and make it harder for criminals to misuse UK companies.
By requiring more detailed financial information and introducing mandatory digital filing, Companies House hopes to create a more transparent and reliable register of UK businesses.
Who Will Be Affected?
The changes are expected to affect most limited companies, including:
- Small companies
- Micro-entities
- Owner-managed businesses
- Start-ups and growing companies
- Company directors
- Accountants and bookkeepers
If your company currently benefits from simplified filing requirements, there is a good chance these reforms will impact you.
What’s Changing?
Mandatory Digital Filing
From April 2028, companies will no longer be able to file annual accounts using paper forms or Companies House’s web-based filing service.
Instead, all accounts must be submitted digitally using approved accounting software.
For many businesses, this may mean reviewing existing accounting systems and ensuring they are compatible with the new filing requirements.
Small Companies Will Need to File More Information
One of the most significant changes is that small companies will be required to submit additional financial information to Companies House.
This includes:
- A balance sheet
- A profit and loss account
- Directors’ reports where required
- Auditor’s reports where applicable
The aim is to provide greater transparency and improve the quality of information available on the public register.
Abridged Accounts Will Be Removed
Companies House is also removing the option for eligible companies to file abridged accounts.
Businesses currently using abridged accounts will need to transition to the new reporting requirements before the changes take effect.
Stronger Audit Exemption Statements
Companies claiming audit exemptions will be required to provide additional declarations confirming:
- Which exemption is being claimed
- That the company meets the qualifying criteria
- That directors have fulfilled their reporting responsibilities
This is intended to strengthen accountability and reduce misuse of audit exemptions.
Changes to Accounting Reference Periods
New restrictions will also apply to companies that wish to shorten their accounting reference period.
Businesses will generally need a valid business reason if they want to shorten their accounting period more than once within a five-year period.
What Does This Mean for Small Businesses?
For many small businesses, these changes will increase the amount of financial information that must be prepared and submitted each year.
While the reforms are designed to improve transparency, they may also require businesses to:
- Review their accounting processes
- Upgrade accounting software
- Improve record-keeping procedures
- Seek additional professional support
- Spend more time preparing annual accounts
Businesses that begin planning early are likely to experience a smoother transition than those leaving preparations until the last minute.
What Should Businesses Do Now?
Although the changes do not take effect until April 2028, there are several steps businesses can take now:
Review Your Accounting Software
Check whether your current accounting system is likely to meet future digital filing requirements.
Assess Your Reporting Processes
Consider whether your existing financial reporting procedures will support the additional information that may need to be submitted.
Speak to Your Accountant
Understanding how the reforms will affect your business early can help you avoid unexpected costs and compliance issues later.
Plan Ahead
The earlier you prepare, the easier it will be to implement any necessary changes to systems and processes.
How AA&R Can Help
Keeping up with regulatory changes can be challenging, especially when you’re focused on running your business.
At AA&R, we help businesses stay compliant while ensuring they understand the practical implications of new legislation.
Our team can help you:
- Understand how the Companies House reforms affect your business
- Review your current accounts preparation and filing processes
- Assess whether your accounting software is fit for purpose
- Ensure compliance with future reporting requirements
- Prepare and file statutory accounts accurately and on time
- Provide ongoing advice as the new regulations are introduced
By taking action now, businesses can avoid last-minute compliance pressures and ensure they are fully prepared when the new requirements come into force.
Don’t Wait Until 2028
Although these changes are still a few years away, preparing early can save time, reduce stress, and help avoid compliance issues in the future.
If you’re unsure how the new Companies House filing requirements could affect your business, AA&R can help.
Our experienced team can review your current arrangements, explain what the changes mean for your company, and help you put a plan in place well before the April 2028 deadline.
Contact AA&R today to arrange a consultation and ensure your business is ready for the future of Companies House reporting.