Small companies and micro-entities will face several important changes to their annual accounts filing obligations from April 2028.
Under reforms introduced through the Economic Crime and Corporate Transparency Act 2023, businesses will be required to file profit and loss accounts with Companies House, submit accounts using commercial software in iXBRL format, and comply with stricter reporting requirements.
However, smaller companies will be able to opt out of publicly displaying their profit and loss accounts on the Companies House register.
Key Takeaways:
- Small companies and micro-entities must file profit and loss accounts from April 2028.
- Businesses can choose not to publish profit and loss accounts publicly.
- All annual accounts must be filed using commercial software.
- Paper and Companies House web-based accounts filing will be discontinued.
- Abridged accounts will no longer be permitted.
- Audit exemption statements will become more robust.
- Companies will have around 21 months to prepare for the changes.
- The reforms aim to improve transparency, data quality and economic crime prevention.
What Are the Companies House Accounts Reforms 2028?
The upcoming reforms represent one of the most significant updates to company accounts filing in recent years. The government’s objective is to modernise the filing system while ensuring information held on the Companies House register is more accurate and reliable.
The Role of the Economic Crime and Corporate Transparency Act 2023
The ECCT Act 2023 provides Companies House with enhanced powers to improve corporate transparency and strengthen the UK’s business environment. The accounts reforms are one part of a broader programme designed to reduce fraud, prevent misuse of company structures and improve trust in corporate data.
Why Is the Government Introducing These Changes?
The reforms aim to:
- Improve transparency on the companies register
- Increase the accuracy and reliability of company information
- Support informed business and investment decisions
- Align UK reporting practices with international standards
- Help law enforcement tackle economic crime and tax evasion
Key Objectives Behind the Reforms
| Objective | Expected Outcome |
| Better transparency | More reliable company information |
| Digital modernisation | Improved filing efficiency |
| Economic crime prevention | Stronger oversight and monitoring |
| Data quality improvements | Better analysis and comparison of company data |
Which New Accounts Filing Rules Will Apply from April 2028?
Several important filing requirements will come into effect from April 2028.
| Reform | What It Means |
| Profit and loss account filing | Required for small companies and micro-entities |
| Software-only filing | Accounts must be submitted using approved software |
| Removal of abridged accounts | Filing option will no longer be available |
| Stronger audit exemption statements | Additional confirmation required |
| Combined filing submission | All account components submitted together |
| Accounting period restrictions | Fewer opportunities to shorten accounting reference periods |
These measures will apply to companies across the UK and are intended to create greater consistency in financial reporting.
How Will Small Companies and Micro-Entities Be Affected by the New Requirements?
Small companies and micro-entities are likely to notice some of the most significant changes under the new rules.
Filing Profit and Loss Accounts with Companies House
One of the biggest reforms is the requirement for small companies and micro-entities to file profit and loss accounts with Companies House.
Previously, many smaller businesses were not required to submit this information publicly. Under the new system, these accounts must be filed as part of the annual accounts package.
The Option to Opt Out of Public Disclosure
To address concerns about commercial sensitivity, the government will allow smaller companies to opt out of having their profit and loss accounts published on the public register.
This means:
- Companies House will receive the information
- HMRC and law enforcement agencies will retain access
- Businesses can choose not to make the information publicly available
This approach attempts to balance transparency with legitimate concerns about privacy and competitive risks.
An accountant who advises small businesses on compliance explained the issue clearly:
“Many company owners initially assume these changes mean their financial performance will automatically become public. In my experience, the opt-out provision is an important safeguard. Businesses should focus on understanding the filing requirement itself rather than worrying about public disclosure.”
What Information Will Still Be Available to Authorities?
Even where publication is declined, relevant authorities will still have access to filed information to help identify:
- Fraud
- Money laundering
- Tax evasion
- Other forms of economic crime
Why Is Companies House Requiring Software-Only Accounts Filing?
Another major change is the move to mandatory digital filing.
From April 2028, all companies will be required to submit accounts using commercial software in Inline eXtensible Business Reporting Language (iXBRL) format.
Moving Away from Paper and Web-Based Filing
Companies House will close its existing paper-based accounts filing service and web filing option for account submissions.
This requirement will apply to:
- Companies filing independently
- Businesses using accountants
- Third-party filing agents
Benefits of Digital Filing
| Benefit | Impact on Businesses |
| Improved data accuracy | Fewer filing errors |
| Faster processing | More efficient submissions |
| Better data analysis | Easier comparison of company information |
| Enhanced compliance | More consistent reporting standards |
An experienced chartered accountant described the transition this way:
“I have seen many businesses rely on basic filing methods for years. The shift to software-based filing may require some adjustment, but it should ultimately improve record keeping and reduce common filing mistakes.”
Businesses that currently rely on paper submissions should begin exploring software options well before the implementation date.
What Does the April 2028 Implementation Date Mean for Businesses?
The government originally intended to introduce these changes in April 2027. Following discussions with stakeholders, implementation has been postponed until April 2028.
Why Was the Timeline Extended?
Many businesses, software providers and professional advisers highlighted the need for additional preparation time.
As a result, companies will have:
- One full accounting year
- An additional nine months after year-end
- Approximately 21 months in total to prepare
Key Preparation Areas
Businesses should use this period to:
- Review current accounting processes
- Assess software requirements
- Consult accountants or advisers
- Monitor Companies House guidance
The additional preparation time should help reduce disruption when the reforms take effect.
How Will the Reforms Improve Transparency and Help Tackle Economic Crime?
A central objective of the reforms is to improve trust in company information.
Accurate financial data helps investors, lenders, suppliers and regulators make informed decisions. It also supports efforts to detect suspicious activity.
The reforms will contribute by:
- Increasing the availability of verified company information
- Strengthening reporting standards
- Improving oversight capabilities
- Supporting enforcement activities
Where businesses choose not to publish profit and loss information, relevant authorities will still be able to access the data for compliance and investigation purposes.
This balanced approach seeks to protect legitimate commercial interests while maintaining effective regulatory oversight.
What Are the Benefits and Challenges for Small Companies?
Although the reforms introduce new obligations, they also offer several potential advantages.
| Potential Benefits | Potential Challenges |
| Greater digital efficiency | Software adoption costs |
| Improved compliance processes | Staff training requirements |
| Better financial record management | Additional preparation work |
| Enhanced business credibility | Transition to new filing methods |
Businesses that prepare early are likely to experience a smoother transition than those that wait until the deadline approaches.
How Can Small Companies Prepare for the New Filing Requirements?
Preparation should begin well before April 2028.
Review Current Accounting Processes
Companies should assess whether existing systems can support digital filing requirements and structured financial reporting.
Choose Suitable Commercial Software
Companies House has indicated that businesses will need to use commercial software to submit accounts.
When selecting software, businesses should consider:
- iXBRL compatibility
- User support
- Integration with existing accounting systems
- Cost and scalability
Seek Professional Advice
Accountants and advisers can help businesses understand the practical implications of the reforms and identify any compliance gaps.
Monitor Official Guidance
Further details, including the process for opting out of profit and loss publication, will be released closer to implementation.
Regularly reviewing Companies House updates can help businesses stay informed.
What Should Businesses Know Before April 2028?
The reforms will affect how companies prepare, submit and manage their annual accounts.
Key points to remember include:
- Small companies and micro-entities must file profit and loss accounts.
- Businesses may be able to opt out of public publication.
- Accounts filing will become software-only.
- Abridged accounts will no longer be available.
- Audit exemption requirements will be strengthened.
- All account components must be submitted together.
- Companies have approximately 21 months to prepare.
Businesses that begin planning early will be better positioned to meet the new requirements and avoid last-minute compliance challenges.
Conclusion: Are UK Small Companies Ready for the Upcoming Changes?
The reforms scheduled for April 2028 mark a significant shift in how companies interact with Companies House. While some businesses may face additional administrative requirements, the changes are intended to improve transparency, strengthen data quality and support efforts to combat economic crime.
With more than a year and a half available for preparation, businesses have a valuable opportunity to review their processes, adopt suitable software and ensure they understand their future filing obligations. Early preparation is likely to be the key to a smooth transition.
FAQs
Will micro-entities still be able to keep their profit and loss accounts private?
Yes. Current plans allow micro-entities and small companies to file profit and loss accounts while opting out of public publication, although the information will still be available to relevant authorities.
What is iXBRL and why is it becoming mandatory?
iXBRL is a digital reporting format that allows financial information to be analysed electronically. It improves data quality and consistency across filings.
Can companies continue filing accounts on paper after April 2028?
No. Companies House plans to close paper-based account-filing services from April 2028.
What happens if a company does not comply with the new filing rules?
Businesses may face penalties or enforcement action if they fail to meet statutory filing obligations.
Will these reforms affect dormant companies?
Dormant companies should monitor official guidance, as some reforms may still affect filing procedures.
How can businesses find approved accounts filing software?
Companies House provides guidance and information about software providers through GOV.UK.
Why has the implementation date been moved from 2027 to 2028?
The government extended the timeline following stakeholder feedback to give companies additional time to prepare for the changes.