Changes to accounts filing announced
Small companies will have to file a profit and loss account with Companies House from April 2028 – but they will not be forced to publish the information publicly.
Meanwhile, it has been announced that all companies will have to file their annual accounts using commercial software.
Existing Companies House web and paper-based accounts filing routes are being closed.
Other smaller changes will also come into force, including the removal of the option for companies to file abridged accounts.
The much-anticipated announcement from Companies House has confirmed the changes that are being made to accounts-filing requirements.
The ability to opt out of having profit and loss information published on the public register is an important change to the previous announcements made around the overhaul.
Details of how companies will be able to use this opt out is yet to be confirmed. Small companies will also not be required to file a directors’ report.
Other changes coming into force include a reduction in the number of times a company can shorten its accounting reference period.
Companies House says the reforms are being introduced to help improve the quality of information held on the register and support business decisions through increased transparency, accuracy and reliability.
The changes also aim to help authorities identify and tackle economic crime, as well as bring the UK’s practices in line with other countries.
The introduction of the ability to opt out of having profit and loss information published has been widely welcomed.
Sally Baker, corporate reporting director at The Institute of Chartered Accountants in England and Wales (ICAEW), said: “It’s right that small companies and micro-entities should continue to have the option to make their profit and loss account public on the grounds of commercial sensitivity, a point we’ve continually made to government.
“We’re pleased that our concerns have been recognised, and that government is striving to strike a fair balance between privacy and transparency, preserving commercial interests while ensuring Companies House and other enforcement agencies receive enough information to identify and tackle economic crime.”
Companies House will be contacting all companies via their registered email address to tell them about these changes and signpost available guidance.
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