While the changes may sound technical, they will affect millions of UK businesses, particularly small companies and micro-entities. The good news is that businesses have been given additional time to prepare, with the implementation date pushed back from April 2027 to April 2028.

What's Changing?

1. Small and Micro Companies Will Need to File a Profit and Loss Account

Currently, many small companies and micro-entities can file limited financial information at Companies House. From April 2028, they will be required to submit a profit and loss (P&L) account alongside their annual accounts.

What does this mean?

For finance professionals, this means more detailed financial information will need to be prepared and submitted as part of the annual filing process.

For business owners, it means Companies House, HMRC and relevant authorities will have greater visibility of a company's financial performance, helping identify errors, inconsistencies and potential economic crime.

2. Profit and Loss Accounts Won't Necessarily Be Public

Following concerns raised by businesses about commercial sensitivity and privacy, the government has introduced an important concession.

Small companies and micro-entities will be able to opt out of having their profit and loss account published on the public register, although they will still need to file it with Companies House.

Further details on how this opt-out process will work are expected in due course.

Why is this important?

Many small business owners were concerned that competitors, suppliers or customers could gain insights into their profitability. This opt-out strikes a balance between improving regulatory oversight while maintaining a degree of commercial confidentiality.

3. Software Filing Will Become Mandatory

Perhaps the most significant operational change is that all companies will be required to file their accounts using commercial software. The existing Companies House web-filing service and paper submission routes for accounts will close on 1 April 2028.

What does this mean?

If your business currently files accounts through software, there is a strong chance you're already compliant. If you currently file through the online service or paper forms, it's time to change.

The move is part of Companies House's wider strategy to create a fully digital, more secure filing environment

4. Other Changes on the Horizon

The reforms also include several additional measures:

• Removal of the option to file abridged accounts.
• Stronger eligibility statements for companies claiming audit exemption.
• All parts of accounts and reports must be submitted together.
• Restrictions on how often companies can shorten their accounting reference period.

While these may have less impact on many smaller businesses, accountants and finance teams should be aware of the wider changes to filing requirements.

Why Is the Government Making These Changes?

The reforms form part of a wider effort to improve trust in UK corporate information. The government's objectives include:

• Improving transparency.
• Increasing the accuracy and reliability of company data.
• Supporting informed business decisions.
• Bringing UK reporting practices closer to international standards.
• Tackling fraud, money laundering and other forms of economic crime.

In simple terms, Companies House is moving from being largely a repository of information to becoming a more active gatekeeper of corporate data.

What Should Businesses Do Now?

Although April 2028 may seem a long way off, preparation should start sooner rather than later.

For Business Owners, speak with your adviser or accountant about how the new requirements will affect your company. If you don't report using suitable software, get this in place ahead of the changes to ensure compliance.

For Accountants, speak with your current software provider to ensure the current package is capable to comply with the upcoming changes. Educate your clients about how these changes will affect them and their reporting. Monitor future Companies House guidance on the publication opt-out process.

Don't Leave It Until 2028!

One of the most positive outcomes from the government's announcement is the additional preparation time. Businesses now have a full accounting year plus nine months (around 21 months), to get prepared for the changes.

This should give businesses, accountants and software providers sufficient time to adapt processes, implement new systems and ensure compliance before the deadline arrives.

Final Thoughts

The Companies House reforms represent one of the biggest changes to company accounts filing in recent years. While the additional reporting requirements may create some extra administrative work, the government's decision to allow smaller companies to opt out of publishing profit and loss information addresses many of the privacy concerns raised during consultation.

For most businesses, the key takeaway is simple: if you're not already filing your accounts through software, now is the time to start planning the transition.

Those that prepare early are likely to find the move to the new regime far smoother when April 2028 arrives.

Source - Companies House to bring in changes to accounts filing from April 2028 - GOV.UK