What Smaller Businesses Need to Know
The UK government has confirmed that planned changes to Companies House filing requirements under the Economic Crime and Corporate Transparency Act 2023 (ECCTA) have been postponed from April 2027 to April 2028.
At the same time, they have confirmed how the measures will actually be implemented, with some alterations to the original plans.
While this provides additional time for preparation, it should not be viewed as a delay to ignore.
The reforms represent a significant shift in how companies prepare and submit financial information, and early planning will
remain important for businesses across Oxford and Oxfordshire.
A shift in reporting requirements
The changes form part of a wider move towards greater transparency and improved corporate oversight.
When implemented, they will introduce a more consistent and detailed reporting framework for small companies and micro‑entities.
The original planned reforms can be found via GOV.UK with the detail of the confirmed implementations being here :
The most notable changes include:
- Mandatory profit and loss accounts to be filed, but with the option to opt out of publishing this information on the public register
- Removal of the option for abridged accounts
- Requirement to include a directors’ report, unless exemptions apply
- Strengthened eligibility statement for all companies claiming an audit exemption
- Reduction in the number of times a company can shorten its accounting reference period
These changes reflect a move towards filing information that more closely mirrors what businesses already prepare internally Read more here
“This is a fundamental change in reporting, particularly for smaller businesses,” says Ollie Squire partner at The MGroup. “It’s important that businesses understand what will be expected and start preparing early.
Balancing transparency and privacy
The initial proposals raised concerns around commercial sensitivity, particularly where profit figures and internal data could be made publicly available.
In response, the government has introduced an“opt‑out” mechanism, allowing companies to prevent their profit and loss account from appearing on the public register.
However, this information will still be submitted to Companies House, HMRC and relevant authorities, supporting the wider objective of tackling financial crime.
Digital‑only filing requirements
Alongside the reporting changes, the method of submission is also evolving.
From April 2028:
- Companies will be required to file accounts digitally
- Submissions must be made using approved software
- Returns will be submitted in iXBRL format
- Paper and manual web‑based filing options will be withdrawn
Further guidance on these changes can be found her
This reflects a broader move towards fully digital filing, improving accuracy, consistency and accessibility of company data
“This isn’t just a compliance change; it’s a systems and process change,” adds Chris Denton partner at The MGroup. “Businesses will need to ensure their systems are ready well in advance.”
Preparing for the transition
Although the deadline has been extended, businesses may benefit from taking a proactive approach now, rather than waiting until closer to 2028.
Areas to consider include:
- Reviewing accounting software and digital capability
- Ensuring systems can support iXBRL‑compliant submissions
- Preparing for more detailed financial disclosures
- Reviewing internal processes and governance frameworks
Taking early action can reduce future disruption and allow time to adapt to the new requirements.
A window of opportunity
The postponement provides a valuable window for businesses to review systems, strengthen processes and plan ahead.
Further overview of the broader Companies House reform programme can be found here
The direction of travel towards greater transparency and digital compliance remains clear, and businesses should use this additional time constructively.
A trusted, expert and supportive approach, backed by independent advice, can help ensure businesses are prepared and remain compliant as the landscape evolves.
If you would like to discuss how these changes may affect your business or review your systems in advance, we are always happy to help.