Why Companies House Filing Rules Are Changing
Major changes are being propose for UK companies as Companies House prepares to introduce new filing requirements under the Economic Crime and Corporate Transparency Act (ECCTA). The reforms are designed to improve transparency, tackle economic crime, and increase the accuracy of information held on the Companies House register.
Small Companies and Micro-Entities Will Need to File a P&L Account
One of the most significant changes will affect small companies and micro-entities. From April 2028, these businesses will be required to file a profit and loss (P&L) account with Companies House as part of their annual accounts submission.
The End of Filleted Accounts for Smaller Businesses
Historically, many small companies have been able to file “filleted” accounts, meaning only limited financial information was placed on the public record. The new rules will remove this option, bringing the filing requirements for smaller businesses closer to those already followed by larger companies.
Will Profit and Loss Accounts Be Made Public?
In response to concerns raised by business groups and advisers, the government has confirmed that while small companies and micro-entities must submit a profit and loss account, they will be able to opt out of having that information published on the public register. The data will still be available to Companies House and relevant government agencies such as HMRC and law enforcement bodies.
Software-Only Filing Is Also Coming
The reforms do not stop there. Companies House has also confirmed that all companies will eventually be required to file accounts using commercial software. This move is intended to improve data quality and streamline the filing process, although some businesses have expressed concerns about additional costs and administrative burdens.
When Will the New Rules Come Into Effect?
The implementation date has been pushed back to April 2028, giving businesses additional time to prepare.
What Small Business Owners Should Do Now
For business owners, now is the time to review current accounting systems and discuss the upcoming changes with small business accountants or advisers. While the reforms may increase reporting obligations, early preparation will help minimise disruption and ensure compliance when the new rules take effect.
Preparing for a More Transparent Filing System
As Companies House continues its modernisation programme, transparency and digital filing are becoming central features of the UK’s corporate reporting framework. Businesses that plan ahead will be best placed to navigate these changes successfully.
