From 2028, all companies will need to file accounts using commercial software, while small companies and micro-entities must file profit and loss.
The government has set out how new measures in the Economic Crime and Corporate Transparency Act 2023 (ECCT Act 2023) will be implemented, with changes to how companies must report information when filing annual accounts with Companies House, and to what that information must contain.
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In fact, the government announced reforms last summer – but they were met by concern from businesses. The measures are now being set out again with two key changes.
Small companies and micro-entities will need to file profit and loss accounts with Companies House, in line with other, larger companies do.
The first change to the previously announced rules is that small companies and micro-entities can, if they wish to, opt out of publishing this information on the public register.
Secondly, the measures will take effect from April 2028, not April 2027, giving businesses more time to prepare.
In addition, all companies will need to file their annual accounts in Inline eXtensible Business Reporting Language (iXBRL) format, by using commercial software. The government has shared details of software providers for filing company account – but also does not endorse or recommend particular products.
The new rules remove the previous option for companies to file abridged accounts and reduce the number of times a company can shorten its accounting reference period. A strengthened eligibility statement is also being introduced for all companies that claim an audit exemption, requiring component parts of the filed accounts and reports to be filed together.
Blair McDougall MP, Minister for Small Business and Economic Transformation), said in a Statement today: ‘The accounts reforms seek to improve the transparency, accuracy and reliability of data on the companies register, to inform business decisions, modernise practices in line with other countries, and tackle economic crime.
‘In June 2025, Companies House communicated that the reforms would be implemented in April 2027. This sparked some concern about the impact some of the reforms might have on businesses. As a result, we paused implementation to take time to engage with a range of stakeholders.
‘We have listened carefully to stakeholders’ concerns and after some consideration have taken the decision to proceed with the reforms, but with two changes.’
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