There has been big news in the business accounting world. The Government is bringing in Companies House compliance changes that will affect a number of businesses. What are they, and what will you have to do? Don’t worry, we’re on hand to answer all of your questions so that you can remain compliant with all rules and regulations. As the accountants so many businesses rely on, we’re here to talk you through all of the Companies House changes 2028 has in store. Ready? Let’s get into it!
What changes are coming to Companies House in 2028?
The UK Government has just announced changes to what information businesses must report when filing their annual accounts with Companies House, and how they need to do it. These reforms were brought in to ensure that the data on the companies register is accurate, reliable and presented with the highest level of transparency. It will also help to inform business decisions, ensure our practices are modernised and in line with other countries, and also help to tackle economic crime.
The Government did originally plan to introduce these Companies House accounts filing changes in 2027, but they were pushed to 2028 in order to give businesses more time to prepare. So you now have a full tax year and just over eight months to prepare. This is great news for any business with concerns about how they are going to deal with the changes, but it also gives you no excuse not to be ready when the time comes!
Let’s find out a bit more about what those changes are and what you need to do.
Key Changes at a Glance
| Change | What It Means for Your Business |
|---|---|
| Profit and loss accounts | Small and micro-entity companies will be required to file a profit and loss account with Companies House. |
| Software-only filing | Paper submissions and the Companies House web filing service will be phased out, with accounts submitted digitally using approved software. |
| iXBRL accounts | All accounts must be filed in iXBRL (Inline eXtensible Business Reporting Language), making financial information easier to analyse. |
| Direct filing from accounting software | Businesses will need compatible accounting software that can submit accounts directly to Companies House. |
| Greater identity verification | Company directors and those filing on behalf of businesses will face enhanced identity verification requirements. |
| Improved transparency | The reforms are designed to improve the accuracy of the Companies House register and reduce fraud across UK businesses. |
Who Will Be Affected by the 2028 Companies House Changes?
The new filing requirements will affect the vast majority of UK limited companies that file annual accounts with Companies House. Whether you’re a small business, micro-entity or larger company, it’s important to understand how the changes could affect your reporting obligations.
If you currently rely on paper filing or prepare your accounts manually, you’ll need to move to software that supports digital filing in the required iXBRL format. Businesses already using cloud accounting software such as Xero are likely to find the transition much easier.
If you’re unsure which rules apply to your business, speaking to an accountant well before 2028 can help ensure you’re fully prepared.
Need Help Preparing for the 2028 Changes?
Don’t leave your compliance until the last minute. Our experienced accountants can review your current processes, recommend the right accounting software and ensure your business is fully prepared for the upcoming Companies House reforms
Speak to Our Team TodayWhy Are These Changes Being Introduced?
The reforms form part of the Economic Crime and Corporate Transparency Act, which aims to improve the accuracy and reliability of information held at Companies House.
The objectives include:
- Improving trust in the Companies House register
- Reducing fraud and economic crime
- Making company information more reliable for lenders, suppliers and investors
- Modernising the UK’s company filing system
- Increasing transparency while giving businesses greater control over commercially sensitive information
Although the new requirements may seem like extra administration, they are designed to create a more secure and trustworthy business environment.
Will small companies need to file profit and loss accounts?
Yes, you will. Small companies, along with micro-entities, will be required to file their profit and loss accounts with Companies House. However, you will have the choice to opt out of that information appearing on the public register. This is in response to concerns from the business and investment community around the privacy and commercial risks that come with sharing this information.
Do I need accounting software to file accounts with Companies House?
Yes, you will need to use accounting software to file your accounts with Companies House. Registered companies will need to file accounts in Inline eXtensible Business Reporting Language (iXBRL) format by using commercial software. The Government does have a list of software providers on GOV.UK to help companies find a suitable software package, so we recommend looking at those to see which one best suits your needs.
Here at Outsource Financial Solutions, we use Xero accounting software. Fully compliant with all current regulations, along with the upcoming changes, it’s seen us achieve great success with our clients and their accounting needs.
Ready for the Companies House changes?
The new filing requirements will affect how your business prepares and submits its accounts. Our experienced accountants can help you stay compliant, choose the right software and prepare well before the changes come into force.
Speak to an Expert →How Can Businesses Prepare Before 2028?
While the changes don’t come into force until 2028, there are several practical steps you can take now.
Review Your Accounting Software
If you’re still using spreadsheets or desktop software, now is a good time to move to cloud accounting software that supports digital filing.
Keep Better Financial Records
Accurate bookkeeping throughout the year makes preparing annual accounts significantly easier and reduces the risk of errors.
Speak to Your Accountant Early
Rather than waiting until your next year-end, discuss the upcoming changes with your accountant. They’ll be able to review your current processes and recommend any improvements before the new rules become mandatory.
Train Staff
If members of your team are responsible for bookkeeping or submitting information, make sure they understand the new filing requirements.
How can an accountant help me prepare for the 2028 Companies House reforms?
Having an accountant that you can trust makes any regulatory changes so much easier to deal with. We will begin by looking at your current operations and filing methods and seeing if anything you do needs to change when the new rules come in. Then we can ensure that your accounts are filed correctly using the right software, and that your wishes regarding any of this being made public are followed at all times.
How OFS Can Help
Regulatory changes can feel overwhelming, especially if you’re already focused on running your business.
At Outsource Financial Solutions, we help businesses stay compliant while making accounting simpler. We’ll review your current accounting systems, ensure you’re ready for the Companies House reforms and manage your accounts using fully compliant cloud accounting software.
Whether you’re changing software, preparing your first digital filing or simply want reassurance that everything is being done correctly, our experienced team is here to help.
Talk to Us
The Companies House changes coming in 2028 don’t have to be complicated.To find out more about the Companies House accounts filing changes for 2028 and how we can help you, get in touch today! We can’t wait to hear from you and help however we can.
Call Us 0208 498 9812 Get in TouchFrequently Asked Questions
Will Companies House changes affect sole traders?
No. These reforms apply to companies registered with Companies House. Sole traders are not required to file annual accounts with Companies House, although they still have tax obligations with HMRC.
Will I need to change my accounting software?
Not necessarily. If your current software supports digital filing in iXBRL format and meets Companies House requirements, you may be able to continue using it. If not, you’ll need to switch before the changes take effect.
What is iXBRL?
Inline eXtensible Business Reporting Language (iXBRL) is a digital format used for filing financial information electronically. It allows Companies House and HMRC to process accounts more accurately and efficiently.
When do the new Companies House rules start?
The Government has confirmed that these changes are expected to come into effect during 2028, giving businesses additional time to prepare.
Can my accountant file my accounts for me?
Yes. Most accountants can prepare and submit your annual accounts on your behalf using compliant software, ensuring you meet all filing requirements and deadlines.
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