As was announced fairly recently, from 1 April 2027, small companies and micro-entities will be required to file additional financial information with Companies House. In addition, companies will no longer be able to prepare and file ‘abridged’ accounts.
What is changing?
The changes support the Economic Crime and Corporate Transparency Act 2023, which aims to combat money laundering and fraudulent activity, enhancing transparency and modernising the digital filing process.
The changes will affect smaller UK companies and LLPs, as well as charitable companies and Community Interest Companies.
Small companies filing options from April 2027
Currently, small companies are not required to send a profit and loss account, directors’ report and, if applicable, an auditors’ report to Companies House.
In simple terms for accounting periods commencing after 6 April 2025 a standalone company is classified as ‘small’ if it has any two of the following for the two most recent accounting years:
- a turnover of £15 million or less
- £7.5 million or less on its balance sheet total
- 50 employees or less
Abridged accounts filing
Companies will no longer be able to prepare and file ‘abridged’ accounts.
Software-only accounts filing
Starting on 1 April 2027, Companies House will adopt software-only filing. This means that all annual accounts must be filed through commercial-compliant accounts software. Web and paper filing will no longer be accepted to file accounts after this date. Such submissions could risk late filing fees from Companies House.
There will be no changes to the way other documents are filed at Companies House, such as Confirmation Statements.
Accounting reference period
Currently, there are no restrictions on the number of times an entity can shorten its accounting reference period. However, new restrictions will come into force to limit companies from shortening their accounting reference period.
The changes mean that the accounting period can only be changed once every five years, unless an appropriate business reason is provided.
Audit exemption
There are no changes to the audit exemption under these provisions. However, companies will be required to specifically state any exemption that is being taken and confirm the entity’s eligibility for that exemption.
Implications of the changes
For small company filings made from 1 April 2027, more detailed accounting information will be publicly available for companies at Companies House to suppliers, customers, employees and other interest parties.
It is envisaged that a number of small companies may try and file filleted accounts before 1 April 2027 to delay by another year more detailed information being available.
Companies that don’t currently use compliant software will need to decide whether to purchase it directly or through third-party agents to assist with software installation, training and filing their financial statements in the correct format.
For more help and advice on these changes, accounting software, filing requirements and accounting compliance, contact Barnes Roffe.
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PLEASE NOTE: By the very nature of this type of information the details of tax law might have changed since they were published, so contact your Barnes Roffe partner before acting on any matter contained in this document.
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PLEASE NOTE: By the very nature of this type of information the details of tax law might have changed since they were published, so contact your Barnes Roffe partner before acting on any matter contained in these documents.
