Major Changes to Filing Company Accounts – What You Need to Know by 2027

Major Changes to Filing Company Accounts

The UK government has announced significant changes to how companies must file their annual accounts with Companies House. These changes, introduced under the Economic Crime and Corporate Transparency Act, aim to modernise corporate reporting, increase transparency, and help prevent economic crime.

As your trusted accountants, Naseems Accountants is here to ensure you’re prepared ahead of the official deadline.

Key Date: 1 April 2027

From 1 April 2027, all companies must file their annual accounts using commercial software. Companies House will no longer accept paper-based or web-based filings for accounts after this date.

This applies to all types of companies, including those filing dormant accounts, micro-entities, and small companies, whether filing accounts independently or through an accountant.

What’s Changing?

1. Software-Only Filing

• All annual account submissions must be done through approved commercial software.
• Paper and web-based filing routes will be permanently closed for accounts.
• This includes dormant companies.
• Other filings, like confirmation statements and director changes, will still be accepted through the online portal.

2. Expanded Financial Disclosure

• Micro-entities must now file both a balance sheet and a profit & loss account.
• Small companies must file:
  • Balance Sheet
  • Profit & Loss Account
  • Director’s Report
  • Auditor’s Report (unless exempt)
• Abridged accounts will no longer be accepted.

3. Audit Exemptions

• Companies claiming audit exemptions must now provide an enhanced statement from directors confirming the exemption and the qualification criteria.

4. Restrictions on Changing Accounting Reference Periods

• Companies can only shorten their accounting reference period once every five years without a valid business reason.

Why Is This Happening?

Companies House is aiming to:

• Increase transparency for lenders, customers, and the public.
• Reduce fraud and false filings.
• Improve data accuracy and consistency across the register.
• Align with international best practices in digital reporting.

Benefits of Software Filing

• Faster processing and immediate acknowledgement of receipt
• Fewer errors and rejected submissions
• Lower risk of late filing penalties
• Cost-effective and more secure than postal submissions
• Real-time validation and compliance checks

What You’ll Need to Start Filing Using Software

To file with Companies House using software, you’ll need:

• Your Company Authentication Code
• A Presenter Account with Companies House
• A Commercial Software Package that supports iXBRL (inline XBRL) filings
• A Credit Account (if any of your filings carry a fee)

Most accounting software providers already support Companies House filings – and some also integrate with HMRC for simultaneous submission.

Filing on Your Own vs. Hiring a Professional

If you do not want to purchase your commercial software, Naseems Accountants can handle the entire process for you. We already use compliant software to file for our clients, ensuring you’re up to date with all new legislation.

Even if you file accounts yourself, remember: you remain legally responsible for the accuracy and timeliness of all submissions.

Already Have an Accountant?

Make sure your accountant or filing agent is aware of these changes and is prepared to switch to digital-only filing before April 2027.

Need Help or Advice?

At Naseems Accountants, we’re here to make this transition smooth and stress-free. We can:

• Review your current filing setup
• Recommend suitable software
• Take over your filing responsibilities
• Ensure you remain compliant well ahead of the deadline

Book a free consultation today to discuss how these changes affect your business and how we can help you prepare.

Q1: When will Companies House stop accepting paper accounts filings?

A: From 1 April 2027, Companies House will no longer accept accounts filed via paper or web forms. All accounts must be submitted through commercial software.

Q2: What kind of software do I need to file accounts with Companies House?

A: You’ll need commercial software that supports iXBRL formatting and is compatible with Companies House. Many accounting packages now include this feature.

Q3: Does this change affect small businesses and micro-entities?

A: Yes. Small and micro-entities will be required to file profit and loss accounts, balance sheets, and directors’ reports digitally using approved software.

Q4: Can my accountant file company accounts on my behalf?

A: Yes. Accountants and third-party agents can use software to file accounts for your company, but the directors are still legally responsible for compliance.

Q5: What if I already use software to file?

A: If you have already filed using software, no action is required. Just ensure your current solution meets Companies House’s updated digital filing requirements by 2027.