Companies House changes – everything businesses need to know

Companies House has confirmed that its latest package of reforms will come into effect from April 2028, following the delay of its original plans due to concerns raised by small businesses and the accounting profession.

These Companies House changes are designed to improve transparency, strengthen data quality and increase compliance within the UK corporate reporting framework. While April 2028 may feel some way off, the reforms will require many businesses to review their existing processes and prepare for a more digitally focused approach to company reporting.

What are the key Companies House changes taking place?

Profit and loss accounts for small and micro-entities

All companies will now be required to file their profit and loss account with Companies House. There will be an option to opt out of public disclosure of this information; however, Companies House has not yet confirmed how or when this option will be available.

Mandatory digital filing

All annual accounts must be submitted using commercial software. Paper and basic web-filing will be phased out.

Removal of abridged accounts

Companies will no longer be able to prepare or file abridged accounts.

Stronger audit exemption statements

Companies claiming audit exemption will need to provide a more robust and explicit statement confirming their eligibility.

Full accounts to be filed together

Component parts, including accounts, reports and statements, must be submitted as a complete package. This is intended to improve data integrity and consistency.

Restrictions on shortening accounting periods

The number of times a company can shorten its accounting reference period will be reduced.

What do the Companies House changes mean for MY business?

The overall direction from the Companies House changes is towards greater transparency and improved quality of financial information. Although companies will have the option to opt out of publicly disclosing their profit and loss account, the requirement to prepare and submit it remains a significant change. This places greater emphasis on having complete, accurate financial reporting that is ready for scrutiny.

There is also a continued move by Companies House and HMRC towards full digital compliance. Businesses that currently rely on manual processes or basic tools may need to review their systems and processes to ensure they are ready for the new requirements and that they maintain accurate, high-quality financial data.

What do you need to do now?

Companies House has confirmed that it will contact all companies through their registered email address with further information about these changes. However, waiting until the reforms take effect could leave businesses under unnecessary pressure.

Taking steps now will help ensure you are prepared for April 2028 and can adapt your processes in good time.

These reforms sit alongside other developments, including the changes to FRS 102 that came into effect for accounting periods commencing on or after 1 January 2026. Together, these changes demonstrate that company reporting and compliance requirements continue to develop quickly.

To prepare for the changes, businesses should:

• Review their current accounting and filing processes
• Assess whether their existing software meets future requirements
• Ensure internal controls support accurate and timely reporting
• Seek professional advice where needed to make the transition as straightforward as possible

How AAB CAN support you

AAB uses approved software which is compliant with the Companies House requirements for submitting your accounts.  We can also advise on what the impact of the reforms will be on your business now so you don’t need to worry when April 2028 arrives, as well as any actions you can take in advance to avoid unnecessary disclosures as a result of the reform. We will help you understand what the changes mean for your business, identify any actions you need to take and ensure you feel prepared for what is ahead.

If you would like to discuss how these reforms may impact your business please get in touch with Hugo Hill or a member of our Business Advisory team.