Companies House Accounts Filing Changes 2026: What Small Companies Need to Know

Companies House has announced an important change to its planned accounts-filing reforms for small companies and micro-entities.

On 23 October 2026, Companies House confirmed that the government is pausing the planned requirement for small companies and micro-entities to file their profit and loss accounts publicly from April 2028.

However, one major change is still going ahead: from April 2028, all UK registered companies will be required to file annual accounts using commercial software in iXBRL format.

For small-business owners and company directors, this means some proposed disclosure requirements have been delayed, but the move towards digital accounts filing remains firmly on the agenda.

What Has Companies House Changed?

The Economic Crime and Corporate Transparency Act introduced a broad programme of reforms designed to improve the accuracy, reliability and transparency of information held on the Companies House register.

One proposed change was that small companies and micro-entities would need to provide more detailed financial information, including their profit and loss account.

Companies House has now confirmed that this particular requirement is being paused while the government considers alternative ways to simplify the filing process for small businesses.

In practical terms, smaller companies will continue to have options to remove, or “fillet”, certain profit and loss information from the accounts filed publicly at Companies House after 1 April 2028.

Does This Mean the April 2028 Reforms Have Been Cancelled?

No.

This is the most important point for company directors.

The pause applies to the proposed requirement for small companies and micro-entities to publish profit and loss information.

The wider move to mandatory software filing is still planned.

From April 2028, Companies House intends to require all UK registered companies to submit accounts in Inline eXtensible Business Reporting Language, or iXBRL, using commercial software.

That applies whether a company prepares and submits its own accounts or uses an accountant or other agent.

Companies House has also confirmed that its existing web and paper-based accounts filing routes will close for accounts filing from that point.

What Is iXBRL?

iXBRL is a digital format used to tag financial information so that it can be read both by people and computer systems.

For most business owners, this does not mean manually adding technical tags to every figure.

Appropriate accounting software will normally handle the technical formatting.

However, it does mean businesses will increasingly need an accounting and filing system capable of producing compliant digital accounts.

This is part of a broader move across UK tax and company reporting towards structured digital information.

Can Small Companies Still File Abridged Accounts?

The latest Companies House announcement means small businesses retain more flexibility than originally expected.

Companies House says companies will continue to be allowed to file abridged accounts, and smaller companies will retain the ability to remove certain profit and loss information from their public filing.

This can matter to privately owned SMEs that may not want detailed commercial information such as turnover, margins or operating costs becoming easily visible to competitors.

However, businesses should remember that the accounts still need to meet their legal and accounting requirements even when certain information is not displayed publicly.

Why Was the Profit and Loss Requirement Paused?

The change follows recommendations from the Small Business Regulatory Taskforce.

The government is looking at ways to reduce unnecessary regulatory burdens while still improving the quality of information available through Companies House.

One area being explored is whether Companies House and HMRC reporting can be streamlined so businesses do not repeatedly provide similar information to different government bodies.

This has been described as a “tell Government once” approach.

If implemented effectively, this could eventually make reporting simpler for SMEs.

For now, however, existing tax and Companies House obligations remain separate.

What Is Still Changing From April 2028?

Even though the profit and loss filing proposal has been paused, businesses should not assume that nothing is changing.

Companies House has confirmed several reforms that are still planned.

These include:

• mandatory commercial-software filing of company accounts;

• filing accounts in iXBRL format;

• stronger eligibility statements for companies claiming audit exemption;

• requirements to file different components of accounts and reports together; and

• restrictions on how often a company can shorten its accounting reference period.

These measures are intended to improve the quality and consistency of information held on the Companies House register.

What Does Mandatory Software Filing Mean for Small Businesses?

Some businesses already use accounting software and may notice relatively little change.

Others still rely on:

paper records, spreadsheets, manual bookkeeping or their accountant preparing accounts using a separate year-end process.

For these companies, the move to mandatory software filing could require more preparation.

The business may need to review whether its existing bookkeeping system can integrate with suitable accounts-production and filing software.

Even where an accountant handles the final submission, accurate digital records can make the year-end process significantly easier.

Will Accountants Be Able to File on Behalf of Companies?

Yes.

Companies House has confirmed that the software-filing requirement will apply both to companies filing their own accounts and to companies using third-party agents or accountants.

So businesses will still be able to use professional advisers.

The difference is that the adviser will need to use suitable commercial software to prepare and submit the accounts.

This makes it useful for companies to confirm well before 2028 that their accountant or accounts provider is prepared for the new filing requirements.

Does This Affect Corporation Tax Filing?

Companies House accounts filing and Corporation Tax filing are connected but remain separate legal obligations.

Companies submit annual accounts to Companies House and Company Tax Returns to HMRC.

HMRC already uses digital formats such as iXBRL for company accounts and tax computations in Corporation Tax filing.

The government's longer-term ambition to reduce duplication between Companies House and HMRC could potentially simplify this area.

However, businesses should not assume that one filing currently replaces the other.

Until any further reforms are formally introduced, companies should continue meeting both Companies House and HMRC requirements separately.

What Should Small Companies Do Now?

April 2028 may sound some distance away, but businesses that still use heavily manual accounting systems may benefit from preparing early.

A sensible review includes checking whether:

your bookkeeping is maintained digitally;

your accounting records are up to date;

your current software can support year-end accounts;

your accountant is preparing for mandatory software filing;

director and company information at Companies House is accurate;

your company qualifies correctly for any audit exemption being claimed; and

your company has clear responsibility for monitoring annual filing deadlines.

There is no need to rush into buying software purely because of this announcement.

But understanding your current accounting setup now can prevent unnecessary disruption later.

Why Accurate Bookkeeping Will Matter More

Digital filing does not improve inaccurate financial records.

If bookkeeping is incomplete, the resulting accounts can still be wrong regardless of how sophisticated the filing software is.

Businesses should therefore continue maintaining reliable records for:

sales;

business expenses;

bank transactions;

payroll;

VAT where applicable;

assets and equipment;

loans;

director transactions; and

other relevant company activity.

Accurate records make accounts preparation, Corporation Tax and Companies House compliance much easier.

What About Micro-Entities?

Micro-entities are among the businesses directly affected by this announcement.

The proposed requirement to file profit and loss accounts publicly has also been paused for qualifying micro-entities.

However, micro-companies will still need to prepare accounts that comply with the applicable legal and accounting requirements.

And, under the current Companies House plan, the move to software filing from April 2028 will still apply.

Micro-company directors should therefore avoid interpreting the announcement as a cancellation of Companies House reform.

It is a change to one part of the reform programme.

Should Businesses Change Their Accounting Software Now?

Not necessarily.

There are still around 18 months before the planned April 2028 software-filing requirement.

A company already using modern bookkeeping or accounting software may simply need to ensure that its accounts-production process will support the eventual Companies House filing requirements.

A company using spreadsheets or manual records may want to review its options earlier.

When considering software, businesses should think about more than filing alone.

Useful features may include:

bank reconciliation;

digital invoice records;

expense tracking;

VAT reporting;

payroll integration;

management reporting;

cash-flow visibility; and

year-end accounts preparation.

The right system should support the business throughout the year rather than simply solving one Companies House requirement.

Why This Change May Benefit Smaller Companies

Many small-business owners had concerns that mandatory public profit and loss disclosure could expose commercially sensitive information.

The government's decision to pause that requirement gives policymakers more time to assess how to improve transparency without creating unnecessary burdens for SMEs.

At the same time, Companies House is continuing with reforms aimed at improving the reliability of company data.

The challenge will be balancing stronger corporate transparency with practical reporting requirements for smaller businesses.

What Should Directors Remember?

Even with the latest changes, directors remain legally responsible for ensuring the company meets its filing obligations.

Using an accountant does not remove the director's responsibility to make sure accounts are prepared and submitted appropriately.

Directors should continue monitoring:

the company's accounting reference date;

annual accounts deadlines;

confirmation statements;

Corporation Tax obligations;

company records; and

Companies House correspondence.

Keeping these matters organised throughout the year is usually much easier than dealing with them immediately before a deadline.

How TaxMech Can Help

Companies House reporting requirements continue to evolve, and businesses need to distinguish between reforms that have been confirmed, delayed or paused.

TaxMech Consultants Ltd can help companies prepare annual accounts, maintain accurate accounting records and manage Companies House compliance.

We can also help businesses review whether their current bookkeeping and accounting systems are suitable for the continuing move towards digital reporting.

The important message from the latest announcement is simple: mandatory public profit and loss filing for small companies has been paused, but mandatory software-based accounts filing from April 2028 is still planned.

Preparing gradually gives businesses time to modernise their accounting processes without unnecessary last-minute disruption.