Big changes are coming to the way all UK companies, including incorporated charities, file their annual accounts with Companies House. From 1 April 2027, all companies will need to file accounts digitally using commercial software.

This is part of the wider reforms set out in the Economic Crime and Corporate Transparency Act, designed to improve the accuracy, quality, and transparency of company data across the UK.

What’s changing?

Here’s a summary of what’s ahead:

Software-only filing for accounts

From April 2027:

• Paper and web-based filing options for accounts will be closed.
• All annual accounts will need to be filed using commercial software, with iXBRL tagging where required.
• This applies to all companies, whether you file accounts yourself or use an accountant or agent.

Companies House has started contacting all companies at their registered email address to make sure businesses have enough time to prepare. If you already file your accounts through software, you’re in a good position and no immediate action is needed. If not, now’s the time to start looking at your options.

More information will be made public for small and micro-entities

From 2027, small and micro-entity companies will have new reporting requirements:

• Micro-entities will need to file both a balance sheet and a profit and loss account.
• Small companies will need to file a balance sheet, profit and loss account, directors’ report, and auditor’s report (unless exempt).

This means that filing abridged accounts will no longer be an option. The goal here is greater transparency by making more financial information available on the public register.

 

New rules for audit exemption statements

If your company claims an audit exemption, there will be new disclosure requirements:

• Directors will need to include an explicit statement on the balance sheet.
• The statement must specify the exemption being claimed and confirm that the company qualifies.

 

Limits on changing your accounting reference period

At the moment, companies can shorten their accounting reference period as often as they like. From 2027, companies will only be able to shorten their accounting reference period once every five years, unless they can provide a valid business reason for doing it more often.

 

Why the change?

The move to digital filing is part of a broader government drive to improve corporate transparency, reduce economic crime, and bring the UK in line with international best practice.

For businesses, digital filing should mean:

• Faster processing
• Fewer errors
• Improved data security
• A more simplified filing process

 

What should you do next?

If you already file accounts using software, there’s no immediate action required.

If you currently file by paper or through the Companies House web service, you’ll need to start planning your switch to software filing well ahead of the 2027 deadline.

We’re already working with clients to review their filing processes and ensure they’re ready for the change. If you’d like advice on what this means for your business and the best way to prepare, please get in touch and we’ll be happy to help.