Companies House reforms: what the 2028 changes mean and how to prepare

The government has now confirmed how forthcoming Companies House filing reforms will be implemented, providing long-awaited clarity for UK businesses.

Companies House reforms: what the 2028 changes mean and how to prepare

The government has now confirmed how forthcoming Companies House filing reforms will be implemented, providing long-awaited clarity for UK businesses.

These changes form part of the Economic Crime and Corporate Transparency Act 2023 and represent a significant shift in how companies prepare and submit their annual accounts. Their aim is to improve transparency, strengthen data quality on the register and support efforts to tackle economic crime.

While the overall direction has been widely anticipated, confirmation of both the requirements and the revised timeline – now moved from 2027 to April 2028 – gives businesses a clearer window to prepare.

Key changes at a glance

From April 2028, the following measures will be introduced:

Mandatory profit and loss filing for small and micro entities
Small companies and micro-entities will be required to file profit and loss accounts with Companies House. However, they will have the option to opt out of publication on the public register, helping to balance transparency with commercial confidentiality.
Software-only filing for all companies
All companies will be required to file their annual accounts using commercial software in a digital (iXBRL) format, with paper and web-based filing routes removed for accounts submissions.
Abridged accounts removed
The option to prepare and file abridged accounts will be abolished, simplifying the filing regime and increasing the level of financial detail submitted.
Implementation date delayed
The reforms will now come into effect from April 2028 (previously April 2027), giving businesses additional time to prepare.

Practical implications

While April 2028 may feel some way off, these changes will have real operational and strategic implications for many businesses.

1. Greater transparency with more control

Requiring profit and loss accounts to be filed increases the level of financial information available to Companies House and regulators. While the opt-out mechanism for public disclosure provides some protection, businesses will still need to provide more detailed accounts than before.

2. A shift to fully digital reporting

The move to software-only filing reflects a broader push towards standardised, digital-first reporting. For businesses still relying on manual or basic filing processes, this will necessitate investment in systems, software and potentially new workflows.

3. Increased compliance expectations

Removing abridged accounts and standardising filing requirements means less flexibility in how accounts are presented. Finance teams will need to ensure accuracy, consistency and completeness, particularly as structured digital filing makes data easier to interrogate.

4. Time to prepare but action needed now

With significant notice currently, businesses have a valuable opportunity to assess current processes, identify gaps, and plan for transition. Early preparation will help avoid disruption closer to implementation.

How businesses should respond

These reforms represent one of the most significant changes to UK corporate reporting in recent years. The direction is clear: more transparency, greater digitalisation, and more consistent reporting standards.

Businesses that act early will be best placed to manage the transition efficiently and avoid unnecessary compliance challenges.

As a starting point, consider:

Reviewing current accounts preparation and filing processes. If you are commonly a last-minute filer, this needs thought in advance to avoid filing late and incurring penalties
Assessing whether existing software supports compliant digital filing
Understanding the potential impact of increased disclosure on stakeholders
Engaging with advisers to plan for the transition and avoid last-minute changes