Changes are coming to company accounts, are you ready?

If you are running a small limited company, there are some big changes coming to how you prepare and file your accounts.

These new rules are part of a law called the Economic Crime and Corporate Transparency Act, and they will affect thousands of small businesses across the UK.

Paper and web-based filing is on the way out

From April 2027, Companies House will only accept accounts filed using commercial software.

That means:

• No more posting your accounts
• No more using the basic online form on the Companies House website
• You will need approved software to file your accounts

Simplified accounts will no longer be an option

From the same date, the choices for how small companies file accounts will change.

Abridged and filleted accounts are being scrapped.

Instead:

• Micro-entities must file a balance sheet and a profit and loss account
• Small companies must file a balance sheet, profit and loss account, directors’ report and, where required, an auditor’s report

Micro-entities will still be exempt from filing a directors’ report, but they will no longer be able to keep the profit and loss account private.

This is part of a push to make more company data available to the public, in the name of transparency.

More info needed from 2026

On top of that, from January 2026, if your company uses FRS 102 Section 1A (as most small companies do), you will have to include more details in your accounts.

This covers things like:

• How you recognise revenue
• Lease arrangements
• Related party transactions
• Provisions and tax

Even though these changes are not from Companies House, they will still apply to your accounts.

Audit exemption? There is a new declaration

If your company claims audit exemption, you’ll now have to clearly say:

• Which exemption you are claiming
• That your company qualifies

This must be stated on the balance sheet, alongside the usual confirmation that no audit was requested by shareholders.

Year-end changes now limited

Want to shorten your accounting year? That is now restricted. You will only be able to do it once every five years, unless you give a clear reason and get approval from Companies House.

Time to plan ahead

These changes are all about improving how company information is shared, but they also mean more responsibility for directors.

If you are not sure what these updates mean for your business, or how to switch to digital filing, we are happy to help. Speak with our team today.