On 9 June 2026, the Government issued a Written Ministerial Statement confirming how significant accounts reform measures contained within the Economic Crime and Corporate Transparency Act 2023 (ECCTA) will be implemented.
Whilst many of the changes won’t take effect until April 2028, they represent one of the most significant overhauls of Companies House filing requirements for small businesses in many years. The reforms are designed to improve transparency, enhance the quality of information held by Companies House, modernise filing requirements and help tackle economic crime.
If you operate through a limited company, it’s worth understanding what is coming and how it could affect your business.
Why are these changes being introduced?
The Government has been undertaking a major reform programme aimed at improving the integrity of the UK company registration system. Historically, Companies House has largely acted as a repository of information submitted by companies, with limited powers to verify the accuracy of that information. The reforms are intended to create a more robust and reliable register that can be trusted by business owners, lenders, suppliers, investors and the wider public.
According to the Government, the objectives are to:
- Improve the transparency, accuracy and reliability of information held at Companies House
- Help businesses make better-informed decisions
- Modernise UK filing requirements in line with international standards
- Assist in preventing fraud and economic crime
Whilst most business owners support these aims, the reforms will bring some important practical changes.
The good news: businesses have been given more time
The original intention was for many of the accounts reforms to take effect from April 2027. However, the Government has now delayed implementation until April 2028. This gives companies a full accounting year plus nine months (approximately 21 months in total) to prepare for the new requirements.
For most businesses, there is no immediate action required, but understanding what is coming will help avoid surprises later.
Profit and loss accounts will need to be filed
Perhaps the most widely discussed change concerns profit and loss accounts. From April 2028, small companies and micro-entities will be required to file a profit and loss account with Companies House, bringing them into line with larger companies.
This has generated considerable debate because many small businesses have historically been able to keep this information private.
However, there is an important qualification. The Government has confirmed that companies will have the option to opt out of publishing this information on the public register. At the time of writing, the detailed rules surrounding this opt-out have not yet been released. As a result, a number of questions remain unanswered:
- How will the opt-out process work?
- Will all companies qualify?
- Will there be any exceptions?
- What information, if any, will remain publicly accessible?
The Government has indicated that further details will be published in due course. Until then, business owners should avoid assuming that their profit and loss account will automatically become visible to competitors, customers or suppliers. What we can say with certainty is that Companies House will receive more detailed financial information than it does currently.
Accounts will need to be filed using commercial software
Another significant change is that all companies will eventually be required to file annual accounts through commercial software. The Government intends to remove the various alternative filing routes currently available.
For eba clients, this is unlikely to create any disruption because we already prepare and submit accounts using professional software. However, companies that currently prepare and file accounts themselves may need to review their systems and processes before the reforms take effect.
Abridged (‘abbreviated’) accounts will be abolished
The option to file abridged accounts will be removed. This change is intended to improve consistency and ensure that Companies House receives a more complete picture of a company’s financial position.
Whilst the practical impact will vary between businesses, it forms part of the Government’s wider move towards greater transparency and standardisation.
Stronger audit exemption requirements
The vast majority of small companies qualify for audit exemption.
Under the new rules, companies claiming audit exemption will be required to provide a strengthened eligibility statement confirming that they meet the necessary conditions. For most genuine small businesses this should not create difficulties, but directors should expect additional declarations and confirmations during the accounts preparation process.
All parts of the accounts must be filed together
The Government has also confirmed that the various components of annual accounts and reports must be filed together as a complete package. This may sound like a small administrative change, but it is intended to improve the quality and consistency of information held by Companies House.
Restrictions on changing accounting periods
The number of times a company can shorten its accounting reference period will be limited. At present, there is no limit.
This is designed to prevent abuse of filing deadlines and improve consistency across the register. For most businesses, this change will have little day-to-day impact, but it may affect companies considering future accounting date changes.
One requirement has been dropped
There is one piece of good news for small businesses. When the Economic Crime and Corporate Transparency Act was originally introduced, the legislation included a requirement for small companies to file a Directors’ Report as part of their annual report and accounts.
The Government has now confirmed that this requirement will be removed. As a result, small companies will not face this additional reporting burden.
What should business owners do now?
There is no need to panic or make immediate changes.
The reforms are still nearly two years away and further guidance is expected before implementation.
However, sensible steps include:
- Ensuring your bookkeeping records are accurate and up to date
- Moving towards cloud-based accounting systems if you have not already done so
- Reviewing how your accounts are currently prepared and filed
- Monitoring future announcements regarding the profit and loss account publication opt-out
- Seeking advice if privacy concerns are an important consideration for your business
- For many companies, the practical impact of these reforms will be relatively modest.
For others, particularly those concerned about confidentiality and the visibility of financial information, the detail of the forthcoming guidance may prove more significant.
How eba can help
The Companies House reforms represent the biggest change to small company filing requirements for many years. Whilst the implementation date remains some way off, understanding the changes now will help ensure your business is properly prepared.
At eba, we will continue to monitor developments and keep our clients informed as further guidance is released.
If you would like to discuss how these reforms may affect your company, or whether any changes to your structure or reporting processes may be beneficial, please get in touch with our team. As always, we’re here to help you stay compliant, minimise risk and make informed business decisions.
