Introduction
The UK government recently announced significant changes to accounting filings. New reforms will take effect in April 2028, providing businesses more time to prepare. These updates will impact how all limited companies—including micro-entities and small businesses—file annual accounts with Companies House.
Here is a breakdown of the changes and your next steps.
Whats Changing?
Mandatory Profit & Loss (P&L) Accounts
Previously, smaller businesses could omit full profit and loss accounts from their filings. Under the new rules, all small companies and micro-entities must file P&L accounts. However, you can opt out of publishing this information on the public register.
Mandatory Software Filing
From April 2028, all companies must file accounts using commercial software in the iXBRL format. Companies House will close its web-based and paper filing options. This rule applies to everyone, whether you file your own accounts or hire an accountant.
The End of Abridged Accounts
The option to file “abridged” accounts—a simplified version that hid certain financial details—is disappearing entirely. You must now file full statutory accounts.
Additional Changes
Audit Exemptions: Directors must now include a stronger statement on the balance sheet to claim an audit exemption.
Single Submissions: You must file all parts of your accounts together as one complete submission.
Accounting Periods: The government is limiting how often a company can shorten its accounting reference period.
Why Has the Deadline Moved to 2028?
The government originally planned these reforms for April 2027. Following feedback from businesses and stakeholders, they pushed the date back by one year. Companies now have 21 months to prepare and select the right software.
What Does This Mean for Your Business?
If you do not use accounting software, start now. The shift to iXBRL filing makes manual and paper-based processes non-compliant. Choosing software early will save you stress as the deadline approaches.
If you worry about your profit and loss information appearing publicly, the opt-out option keeps you in control. The government will confirm the specific opt-out process in due course.
How Accounting Crunchers Can Help
At Accounting Crunchers, we track regulatory changes so you do not have to. We guide you through transitioning to compliant software, restructuring your filings, and understanding how these updates affect your business.
Get in touch today, and let’s make sure your business is ready well before April 2028.