Significant changes are coming to Companies House from April 2027 as the next phase of the Economic Crime and Corporate Transparency Act rolls out. These updates are designed to improve transparency, combat fraud and make more financial information available to the public, but they’ll also introduce new compliance obligations for small and medium-sized businesses across the UK.
Mandatory digital filing through commercial software
From 1 April 2027, all companies will need to file accounts digitally using commercial software.
This modernisation effort will see Companies House close web and paper filing routes for annual accounts (including dormant accounts), though these options will remain available for other statutory filings.
What this means for you
If you’re a DJH client, you’re already covered. We use approved and compliant software to file your accounts, so there’s nothing you need to worry about.
However, if you’re currently filing your own accounts, now’s the time to start planning ahead. You may need to invest in system upgrades or arrange staff training to ensure compliance.
If you’d like help with digital filing services or advice on which commercial filing software solution would work best for your business, we’re here to help.
Changes for small and micro companies
Historically, small and micro companies have been able to file abridged or filleted accounts, keeping their profit and loss accounts private. This meant revenues, margins, and profits stayed out of the public domain.
From 1 April 2027, small companies will be required to file a copy of their balance sheet, directors’ report, auditor’s report (unless exempt) and profit and loss account. Micro-entities will be required to file a copy of their balance sheet and profit and loss account. Companies will no longer be able to prepare and file ‘abridged’ accounts.
The impact on your business
- Your turnover and net profits will become public record
- This opens you to scrutiny from competitors, clients, investors and employees
- This could affect your negotiation leverage, reveal margins, and expose compensation structures
However, increased transparency can also build trust with stakeholders, unlock new business opportunities, and level the playing field across your industry.
Current uncertainty – a u-turn is still possible
However, it’s worth noting that there’s currently speculation in the press that the UK government is reviewing and likely scrapping both the mandatory digital filing requirement and the requirement for small companies to file full accounts publicly.
This potential policy shift aims to cut red tape, simplify compliance, and ease the burden on small businesses.
It’s easy to see why the government is reviewing these particular policies. If you have concerns about the operational or commercial risks these changes might introduce, we’re here to discuss your options and help you prepare.
We’ll keep you updated if any official u-turns are announced.
Additional changes moving forward
A few other changes appear to be proceeding without challenge:
Enhanced audit-exemption disclosures
Directors claiming audit exemption will need to specify which exemption they’re relying on and confirm their eligibility directly on the balance sheet.
Tighter control over accounting period changes
Companies will only be able to shorten their accounting reference period once every five years, unless they can demonstrate a valid business reason.
How we can help
We understand these changes might feel overwhelming, but we’re here to help you navigate them smoothly and ensure your business remains compliant and well-prepared for whatever comes next.
Whether you’d like to discuss how these updates will affect your specific situation or need help planning for the transition, please don’t hesitate to get in touch. We’re committed to keeping you informed as these policies develop and supporting you through any changes that do come into effect.
