Key Changes To Company Filing Requirements

The government has recently confirmed a number of significant changes to Companies House filing requirements which are expected to take effect from April 2028. These changes are aimed at improving transparency and reducing economic crime and will affect small companies.

Profit and loss accounts will need to be filed

Currently, many small companies can file accounts at Companies House without submitting a profit and loss account. From April 2028, small and micro companies will be required to file a profit and loss account with Companies House as part of their annual accounts filing.

Following consultation with businesses and advisers, the government has confirmed that companies will be able to opt out of having the profit and loss account published on the public register. This means that while the information must be filed with Companies House, it will not be available for public inspection. The information will, however, be available to relevant government authorities where required.

Accounts must be filed using approved software

Companies House will move to a fully digital filing system. From April 2028, companies will no longer be able to file accounts using Companies House's existing web-based accounts filing service. Instead, accounts must be filed using approved commercial software.

Many businesses already use accounting or accounts production software and may see little practical impact. However, directors who currently prepare and file accounts directly through Companies House will need to ensure they have suitable software in place before the changes take effect.

Restrictions on changing your accounting year end

The government has announced plans to restrict the ability of companies to repeatedly shorten their accounting reference period (year end). Under the current rules, companies can generally shorten their accounting period as often as required. This flexibility has sometimes been used to alter filing dates or reporting periods.

The new rules will limit the number of times a company can shorten its accounting reference date. Detailed guidance has not yet been published, so it is not currently known exactly how frequently changes will be permitted or what exceptions may apply.

What should company directors do now?

There is no immediate action required, as these changes are not expected to take effect until April 2028. However, directors should be aware that:

• Profit and loss accounts will need to be filed with Companies House.

• Companies will be able to opt out of public disclosure of those profit and loss accounts.

• Accounts filing will need to be completed through approved software.

• Future changes to accounting year ends are likely to be more restricted than under the current rules.

We will provide further updates as additional guidance is released by Companies House.

If you would like to discuss how we can help your business, please speak to your usual James Cowper Kreston contact, or get in touch with our team here to find out how we can help you maximise your potential.