Companies House Confirms Major Accounts Filing Reforms for Small Businesses from 2028

Small businesses across the UK are being urged to prepare for major changes to company accounts filing after the government confirmed a series of reforms that will come into force from April 2028.

The measures, introduced under the Economic Crime and Corporate Transparency Act 2023, will change how companies submit financial information to Companies House, with ministers arguing the reforms will improve transparency, strengthen the accuracy of the company register and help combat economic crime.

One of the most significant changes for SMEs is the requirement for small companies and micro entities to file profit and loss accounts as part of their annual submissions. However, following concerns raised by business groups, the government has confirmed that smaller firms will be able to opt out of having this information published on the public register, although it will still be available to relevant authorities.

The reforms will also bring an end to abridged accounts and require all companies to file accounts digitally using approved commercial software in iXBRL format. Paper filing and existing web-based filing methods will eventually be phased out as part of the government's wider push towards digital reporting.

Companies House had originally planned to introduce the measures in April 2027, but the implementation date has now been pushed back by a year. The delay gives businesses a full accounting year plus an additional nine months to prepare, providing what officials describe as a 21-month transition period.

The announcement follows extensive consultation with businesses, accountants and industry bodies. While supporters of the reforms say the changes will improve trust in the UK's corporate framework and make it harder for criminals to exploit company structures, critics argue they could increase costs and administrative burdens for smaller firms.

Business groups have voiced concerns that mandatory software filing and additional reporting requirements could place pressure on smaller enterprises already facing rising operating costs. Some have also questioned whether the benefits of increased transparency outweigh the compliance burden for legitimate businesses.

Despite the criticism, the government has decided to proceed with the reforms, describing them as an important part of efforts to modernise Companies House and improve the quality of information held on the register. Officials believe the measures will help law enforcement agencies and HMRC identify fraudulent activity more effectively while creating a more reliable environment for investors, lenders and suppliers.

For small business owners, the next two years will be critical. Companies will need to review their accounting processes, ensure they have suitable software in place and understand the new filing requirements well before the April 2028 deadline. While the reforms are intended to strengthen corporate transparency, they also mark one of the biggest changes to small company reporting requirements in recent years.