As part of the UK government’s ongoing efforts to modernise corporate transparency and combat economic crime, Companies House has announced significant changes to the way companies must file annual accounts, effective 1 April 2027.
These reforms form part of the Economic Crime and Corporate Transparency Act 2023, and follow earlier measures such as mandatory identity verification for directors and persons with significant control (PSCs).
Key changes from April 2027
From 1 April 2027, all UK companies will be required to:
- File annual accounts using commercial software
Companies House will discontinue its web-based and paper filing systems for accounts. All filings must be submitted digitally via approved software platforms, such as Xero.
- Include profit and loss accounts
Small and micro-entity companies will be required to file basic profit and loss statements, increasing financial transparency across the register.
- Comply with updated audit exemption and accounting reference period rules
Further changes are expected to affect audit exemption declarations and the frequency with which companies may shorten their accounting reference periods.
These changes will not affect the filing of confirmation statements, director updates, or other non-account documents, which will continue to be accepted via Companies House’s online services.
Why the changes are being introduced
The reforms aim to:
- Improve data accuracy and reduce fraud Software filing reduces formatting errors and enables better fraud detection.
- Enhance business confidence and credit access Public availability of basic financial data supports trade credit decisions and investor due diligence.
- Streamline compliance Software filing offers a more secure and efficient alternative to paper-based submissions.
Transition timeline
Companies will have over a year to prepare, comprising:
- One full accounting year under current rules
- Nine months following the end of that accounting year
This transition period is designed to give businesses ample time to adopt compliant software and adjust internal processes.
Recommended actions
- Review your current filing method If you already use compatible software, no action is required.
- Speak with your accountant or filing agent Ensure they are aware of the upcoming changes and are using compliant software, such as Xero.
- Explore software options Companies not currently using software should begin evaluating providers to ensure readiness well before the deadline.
Further guidance
Companies House has published guidance on GOV.UK to support businesses through the transition. We recommend clients begin preparations early to avoid disruption and ensure compliance.
For further information or assistance in navigating these changes, please contact your usual Marbury relationship manager or info@marburys.com.
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