TL;DR
- ECCTA 2023 planned to remove the option for small companies to file abridged accounts, but that change was paused on 23 October 2026 and abridged accounts remain available after 1 April 2028.
- All accounts must be filed in iXBRL format using commercial software from April 2028.
- Micro-entities are covered by the same pause on profit and loss filing.
- Companies House gains new powers to query, reject and investigate inconsistent filings.
- Software-only filing applies to accounts filed from April 2028.
Update 24 October 2026: profit and loss filing paused On 23 October 2026 Companies House said the government has paused the requirement for small companies and micro-entities to file profit and loss accounts with Companies House from April 2028. The pause follows recommendations of the Small Business Regulatory Taskforce and was set out in a Written Ministerial Statement to the House of Lords (HLWS419) on the same day. Companies can continue to file abridged accounts after 1 April 2028. Smaller companies keep the option to remove, or fillet, profit and loss information from the accounts they file at Companies House after 1 April 2028. The announcement gives no new date for profit and loss filing. During the pause the government will look at streamlining Companies House and HMRC filing under its 'tell Government once' ambition. The requirement for all UK registered companies to file accounts in iXBRL format using commercial software from April 2028 is going ahead as planned. This applies to companies filing their own accounts and to those using an agent or accountant. From April 2028 Companies House web and paper filing closes for accounts, while web filing stays available for non-accounts filings such as confirmation statements and updates to director details. Source: Companies House, GOV.UK, 23 October 2026 and Written Ministerial Statement HLWS419. |
What Are the Companies House Accounts Filing Reforms?
The Economic Crime and Corporate Transparency Act 2023 (ECCTA) introduces the most significant changes to UK company accounts filing in decades. The reforms are designed to improve the quality and transparency of financial information on the Companies House register, reducing the scope for abuse and giving creditors, investors and the public more meaningful data about company finances.
Companies House has been given new powers to query, reject and investigate filings that appear inaccurate or inconsistent. The reforms also introduce mandatory digital filing and structured data requirements that will make company accounts machine-readable for the first time. Over five million companies are registered at Companies House, the vast majority of which are small or micro-entities currently benefiting from simplified filing options that the reforms will remove or restrict.
Key Changes for Small Companies
The most significant change for the majority of UK companies concerns small company filing options. Currently, small companies can file abridged accounts that exclude the profit and loss account, meaning their revenues and costs remain private. Following the 23 October 2026 pause, this option remains available after 1 April 2028.
The plan for small companies to file a profit and loss account with Companies House was paused on 23 October 2026. Small companies can continue to file abridged accounts after 1 April 2028. Revenue figures, gross profit and operating costs can therefore stay off the public register for companies that file abridged or filleted accounts.
Small companies will also be required to file a directors report alongside their accounts. A small company for Companies House purposes is one that satisfies at least two of three conditions: annual turnover not more than 10.2 million pounds, balance sheet total not more than 5.1 million pounds, and no more than 50 employees.
Changes for Micro-Entity Companies
Micro-entities, which currently qualify to file a balance sheet only with no profit and loss account, were also covered by the profit and loss filing plan. A micro-entity is one that satisfies at least two of: turnover of £1 million or less, a balance sheet total of £500,000 or less, and 10 employees or fewer. The 23 October 2026 pause means micro-entities are not required to file a profit and loss account from April 2028. The announcement gives no new date for profit and loss filing.
Companies House has indicated that micro-entities will retain some simplified filing options under the reformed regime, though the details are to be confirmed. The objective is to reduce the burden on the very smallest companies while still improving the quality of financial data on the register overall.
Mandatory Digital Filing and iXBRL
The reforms introduce a requirement for all company accounts to be filed digitally using software that produces accounts in iXBRL (inline eXtensible Business Reporting Language) format. This structured data format allows Companies House to extract and process financial data automatically, rather than treating accounts as unstructured documents.
Companies that currently file paper accounts or use PDF uploads will need to transition to iXBRL-compatible accounting software. Most mainstream UK accounting packages, including Xero, Sage, QuickBooks and FreeAgent, already support iXBRL output. HMRC has required iXBRL filing for corporation tax purposes since 2011, so many accountants already have experience with the format.
Implementation Timeline
The reforms are being introduced on a phased basis. The requirement for small companies and micro-entities to file a profit and loss account from April 2028 was paused on 23 October 2026. Accounts filed with Companies House from April 2028 must be in iXBRL format and filed using commercial software.
Companies House web and paper filing closes for accounts from that date. Companies House confirmed on 23 October 2026 that the software-only requirement is going ahead as planned.
What Directors Should Do Now
Review the current accounting software in use to confirm whether it supports iXBRL output. If not, identify compliant alternatives and plan a transition ahead of the relevant implementation date.
Profit and loss information does not have to become publicly available from April 2028. Companies that rely on abridged filing can continue to use it after 1 April 2028, following the 23 October 2026 pause. Web filing stays available for non-accounts filings such as confirmation statements and updates to director details.
Engage with the company accountant or auditor to understand how the changes affect the accounts preparation process and what additional information will need to be filed. Companies that prepare accounts internally without an external accountant may require additional bookkeeping resource to produce full accounts.
Companies House New Powers to Query Filings
ECCTA gives Companies House new powers to query information that appears inconsistent or inaccurate. Registrars will be able to ask companies to provide additional information, correct entries, or explain apparent discrepancies. This represents a shift from Companies House operating as a passive register to one with active oversight responsibilities. Companies that file accounts containing material errors may receive queries under the new regime.
Impact on Credit Ratings and Supplier Relationships
Profit and loss filing would have added to the financial information available about small companies. Currently, a company that files abridged accounts provides very limited financial data to the market. No new date for profit and loss filing at Companies House has been given. The software-only iXBRL filing requirement from April 2028 is unaffected by the pause.
Frequently Asked Questions
When do the Companies House accounts filing reforms take effect?
The profit and loss filing change was paused on 23 October 2026. Accounts filed with Companies House from April 2028 must be in iXBRL format and filed using commercial software.
Will small companies have to publish their profit and loss account?
No. Following the 23 October 2026 pause, small companies can continue to file abridged accounts after 1 April 2028. A requirement to file a profit and loss account was planned, but it was paused on 23 October 2026.
What is iXBRL and do I need new software?
iXBRL is a structured data format that tags financial information for automated processing. Most mainstream accounting software already supports iXBRL output. Companies using legacy systems or manual PDF filing will need to switch to compliant software ahead of the mandatory digital filing requirement.
Are micro-entities affected by the reforms?
Yes, though the specific requirements are subject to secondary legislation. The current balance-sheet-only filing option for micro-entities is under review. Directors of micro-entities should monitor Companies House guidance as implementation approaches.
Where can I find official guidance on the reforms?
Companies House publishes guidance at companieshouse.gov.uk. The relevant legislation is the Economic Crime and Corporate Transparency Act 2023, available at legislation.gov.uk.
Sources: Companies House | Economic Crime and Corporate Transparency Act 2023 | GOV.UK ECCTA factsheets
