The UK Government has confirmed major changes to the accounts filing rules. These changes will take effect from April 2028, forming part of the Economic Crime and Corporate Transparency Act 2023.
Why the Changes are Happening
The Government wants to strengthen trust in the UK’s business environment. At present, some data on the Companies House Register lacks consistency and accuracy. This can affect decision-making for lenders, investors and suppliers.
Therefore, the Government plans to strengthen reporting requirements by:
- Improving transparency and trust in company data
- Help businesses and stakeholders make informed decisions
- Align the UK with international reporting standards
- Reduce fraud, tax evasion and other economic crime
Additionally, better data will help authorities detect unusual activity more quickly. This will support stronger enforcement and reduce risks for legitimate businesses.
Accounts Filing Changes Coming in April 2028
1. Profit and Loss Filing for Small Companies
Small companies and micro-entities must file Profit and Loss accounts. This change brings them in line with larger companies. However, business can choose not to publish this information publicly. This option helps protect commercially sensitive data. Even if a company opts out, authorities will still access the information.
2. Mandatory Software Filing
All companies must file accounts using commercial software. This apples to both businesses and their accountants. Additionally, companies must use the iXBRL format. This format allows both humans and computers to read financial data.
From April 2028:
- Paper filing will no longer be available
- Web-based accounts filing will close
- Software filing will become the only option
3. Removal of Abridged Accounts
Companies will no longer file Abridged Accounts. Instead, they must submit full accounts. This will create greater consistency across all filings. It will also provide more detailed and useful information to users of the register.
4. Stronger Audit Exemption Statements
Companies that claim audit exemption must provide a stronger and clearer statement. This statement must confirm their eligibility. They must confirm the exemption they claim and why they qualify for that exemption. This requirement will reduce misuse of audit exemptions.
5. Filing Accounts as a Complete Package
Companies must submit all parts of their accounts together. This means no missing sections or partial submissions.
This includes:
- Financial statements
- Notes to the accounts
- Any supporting reports
6. Changes to Accounting Reference Periods
Companies will face limits on how often they shorten their accounting period. Previously, some businesses used this flexibility to delay reporting. Therefore, this change aims to prevent misuse and ensure consistency.
The Original Timeline for the Accounts Filing Changes
The Government delayed the implementation date after feedback from businesses and stakeholders. Originally, the rules would start in April 2027. Now, they will begin in April 2028. This delay gives businesses more time to prepare.
Companies will have:
- One full accounting year
- Plus 9 months to file their accounts
In total, businesses will have around 21 months to get ready.
What Businesses Should Do Now
While April 2028 may seem distant, preparation should begin early. Businesses that act now will face fewer challenges later.
You should consider:
- Reviewing your current accounts preparation process
- Checking if your software supports iXBRL formatting
- Speaking to your accounting about readiness
- Exploring suitable commercial software providers
- Keeping financial records accurate and up to date
If you already use modern accounting software, you may need only minor changes. However, you should still confirm that your system meets the new requirements.
Additionally, businesses should stay informed about further guidance. The government will release more details over time, including now the opt-out for Profit and Loss publication will work.
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This article is for general informational purposes only and does not constitute legal or financial advice. While we aim to keep our content up to date and accurate, UK tax laws and regulations are subject to change. Please speak to an accountant or tax professional for advice tailored to your individual circumstances. Pi Accountancy accepts no responsibility for any issues arising from reliance on the information provided.