The measures are part of the Economic Crime and Corporate Transparency Act 2023, which aims to improve transparency around business ownership and reduce the fraudulent use of the Companies House register.
The changes were originally due to be implemented from April 2027 but were postponed following concerns raised by stakeholders.
Now, as of April 2028, all UK registered small companies and micro-entities will be required to file their P&L accounts with Companies House via commercial software. All accounts will need to be digitally tagged, meaning that all filing will have to conform to the Inline eXtensible Business Reporting Language (iXBRL) format.
While P&L filing will now be mandatory, in line with the requirements for larger companies, the government has offered an option for small businesses to opt out of publishing their information on the public register, though further details about this option are yet to be confirmed. For companies who wish to opt out, Companies House, law enforcement and HMRC will still have access to accounts if they are requested to help reduce economic crime, tax evasion and fraud.
Further changes announced as part of the reforms include:
- A strengthened eligibility statement for companies claiming an audit exemption
- The removal of the option for companies to file abridged accounts
- A reduction in the number of times a company can shorten its accounting reference period
- A requirement for component parts of filed accounts and reports to all be filed together
To prepare for the changes, small companies and micro-entities have a full accounting year and nine months, a total of 21 months. Companies House has confirmed that all companies affected will be contacted via email to inform them of the changes and to signpost to available guidance before the deadline.
It’s important to take a proactive approach to planning for this change. If you would like to discuss the new rulings further and understand how best to prepare for April 2028, contact us on info@kilsbywilliams.com or 01633 810081.
