Companies House Accounts Filing Reforms 2028: What Every UK Business Director Needs to Know

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. Under the reforms, this option is removed.

From financial years beginning on or after 1 January 2026, small companies will be required to file a profit and loss account with Companies House. This information will be publicly available on the register. Directors should be aware that revenue figures, gross profit and operating costs will become visible to competitors, suppliers and customers in a way they have not been previously.

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, will also face changes under the reforms. A micro-entity is one that satisfies at least two of: turnover not more than 632,000 pounds, balance sheet total not more than 316,000 pounds, no more than ten employees. The current balance-sheet-only filing option is under review and may be amended by secondary legislation. Directors of micro-entities should monitor Companies House guidance as implementation dates approach.

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. For financial years beginning on or after 1 January 2026, small companies and micro-entities will be required to file a profit and loss account. For a company with a 31 December year end, the first affected accounts cover the year ending 31 December 2026, due for filing by 30 September 2027.

For companies with a 31 March year end, the first affected accounts cover the year ending 31 March 2027, due for filing by 31 December 2027. The mandatory digital filing requirement is expected to come into effect on a similar timetable, subject to secondary legislation and Companies House system readiness.

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.

Consider the commercial implications of profit and loss information becoming publicly available. For companies that have relied on abridged filing, this represents a material change to the information competitors and counterparties can access. Directors should discuss with their accountant whether any changes to the timing or presentation of financial information are warranted.

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

The increased transparency of company financial information is likely to affect how credit reference agencies, suppliers and customers assess small companies. Currently, a company that files abridged accounts provides very limited financial data to the market. Under the reformed regime, the profit and loss account will give a clearer picture of financial performance and sustainability. Companies with strong financial performance may find this beneficial, while those with thin margins or losses may need to manage the communication of their financial position more carefully.

Frequently Asked Questions

When do the Companies House accounts filing reforms take effect?

The reforms apply to financial years beginning on or after 1 January 2026. For a company with a 31 December year end, the first affected accounts cover the year ending 31 December 2026, due for filing by 30 September 2027.

Will small companies have to publish their profit and loss account?

Yes. Under the reforms, small companies will no longer be able to file abridged accounts. A profit and loss account will be required and will be publicly available on the Companies House register.

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