24 Jun Companies House Accounts Changes Confirmed for 2028: What Small Business Owners Need to Know
If you have been keeping a close eye on the news lately, you might have heard whispers about big changes coming to how you file your business accounts. For a while, the timeline was a bit "up in the air," but we finally have clarity.
Companies House has confirmed that the major reforms introduced under the Economic Crime and Corporate Transparency Act (ECCTA) are officially set to land in April 2028.
While that might feel like a long way off, these changes represent the biggest shift in UK company filing in a generation. For many of our clients: from solo consultants to thriving media production firms: this will change the way you interact with the public register.
At Harrison’s Accountancy, we believe that being prepared is the best way to remove the anxiety often associated with tax and accounts. So, let’s break down exactly what is changing, why it’s happening, and what you need to do to stay ahead of the curve.
Why are these changes happening?
The primary driver behind these reforms is the fight against economic crime. The UK government wants to ensure that the information held on the Companies House register is accurate, reliable, and transparent. By tightening the rules, they aim to make it much harder for bad actors to use UK companies for fraudulent activities.
However, for the vast majority of legitimate business owners, these changes simply mean a few more steps in the filing process and a shift toward a "digital-first" approach.
As your limited company accountant, we’ve been monitoring these developments closely. According to a recent ICAEW report, the government has actually listened to feedback from small businesses and advisors, pushing the start date back from 2027 to 2028 to give everyone more time to transition.
1. Mandatory Profit & Loss Filing (With a Privacy Catch)
Will my private financial data be public?
This has been the biggest concern for small business owners. Currently, many small and micro-entities file "filleted" accounts, which allow them to keep their Profit and Loss (P&L) account off the public record. Under the new rules, this will change.
What’s changing?
From April 2028, all small companies and micro-entities will be required to file their profit and loss account with Companies House.
The Privacy Win:
In a significant win for privacy, the government has confirmed that while you must file the P&L, you can opt out of having that information published on the public register. This means that while Companies House and enforcement agencies will see your turnover and profit figures, your competitors and nosy neighbours won’t necessarily be able to see them with a simple search.
Details on how exactly this "opt-out" mechanism will work are still being finalised, but it’s a relief for businesses that value their commercial sensitivity.
2. The End of Web and Paper Filing
How will I file my accounts?
For years, many small businesses have used the "WebFiling" service directly on the Companies House website or, in rare cases, sent paper accounts through the post.
The New Reality:
Those days are numbered. All accounts will now have to be filed using commercial software. This means the accounts must be digitally tagged in iXBRL format (Inline eXtensible Business Reporting Language).
Why this matters for you:
If you are still managing your books on a spreadsheet or a notepad, April 2028 is your hard deadline for moving to the cloud. As Xero Platinum Champion Partners, we’ve seen first-hand how much easier life becomes when your bookkeeping and filing are handled through a seamless digital workflow.
The web-based route will still be available for things like confirmation statements or changing director details, but for the accounts themselves, it’s software or nothing.
3. Abridged Accounts Are Being Scrapped
What are abridged accounts?
Currently, some small companies choose to file "abridged" accounts, which provide less detail than full accounts (for example, by combining certain line items on the balance sheet).
The Change:
The option to file abridged accounts is being removed. The goal is to standardise the data that Companies House receives, making it easier for their systems (and AI tools) to spot inconsistencies or potential fraud.
As your small business accountant, we will handle the technical side of this, ensuring your accounts meet the full disclosure requirements without you having to worry about the jargon.
4. Strengthened Audit Exemption Statements
Does my business need an audit?
Most small businesses are exempt from a formal audit if they meet certain criteria (e.g., turnover under £10.2 million).
The Change:
Companies House will now require a strengthened statement on the accounts from directors. You will need to explicitly identify which exemption you are claiming and confirm that the company is actually eligible for it.
This is part of a broader move to ensure directors take full responsibility for the accuracy of their filings. It’s no longer enough to just "tick a box": you need to be sure you qualify.
5. Restrictions on Shortening Your Accounting Period
Can I change my year-end date?
Sometimes businesses want to shorten their "Accounting Reference Period" (their financial year) to align with a tax year or for other administrative reasons.
The Change:
The government is introducing a reduction in the number of times a company can shorten its accounting period. This is to stop companies from constantly shifting their deadlines to delay filing their accounts. Consistency is the name of the game moving forward.
6. Public "Naughty Step" Annotations
What happens if I don’t comply?
Companies House is getting "teeth." If a company does not comply with a notice regarding the compliance of its accounts, an annotation will be placed on the public register.
Think of this as a public warning sign. If a potential client or supplier sees a non-compliance annotation on your record, it could damage your business reputation and creditworthiness. This makes it more important than ever to have a reliable limited company accountant in your corner to ensure every deadline is met.
How to Prepare for April 2028
While April 2028 feels like a lifetime away, the transition to digital-only filing and the new P&L requirements require a bit of planning. Here is how you can start preparing now:
- Move to the Cloud: If you aren't using software like Xero yet, now is the time to start. It doesn't just help with compliance; it gives you real-time insights into your cash flow.
- Review Your Data Privacy: Start thinking about how the P&L filing might affect you. While you can opt out of the public record, the data will still exist in the Companies House system.
- Get Your Records in Order: With stricter rules on audit exemptions and accounting periods, having clean, accurate management accounts is essential.
- Talk to Your Accountant: Don't wait until the deadline is looming. We are already helping our clients prepare for these shifts so the transition in 2028 is a "non-event."
How Harrison’s Accountancy Can Help
We know that "Companies House changes" sounds like a recipe for a headache. That’s why we’re here. We act as your own CFO, taking the technical burden off your shoulders so you can focus on what you do best: running your business.
Whether you are a sole trader looking for self-assessment support or a growing limited company needing VAT support, we provide a personalised, professional service that keeps you on the right side of the law.
Ready to get ahead of the 2028 changes?
Contact us today for a friendly chat about your business accounts. Let’s make sure your business is future-proof!
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