You may have seen headlines about major changes to the way companies file accounts with Companies House.
The key message? Nothing is changing in April 2027.
The proposed reforms, introduced under the Economic Crime and Corporate Transparency Act 2023, were designed to improve transparency and modernise the filing system. However, the planned implementation date has been dropped and the proposals are currently under review. Businesses will be given at least 21 months’ notice before any new requirements come into force.
Here’s what you need to know.
What changes were originally proposed?
The reforms were expected to include:
- Mandatory software-only filing for all companies, including dormant companies
- Removal of abridged accounts
- Increased disclosure for small and micro-entities, including filing profit and loss accounts at Companies House
- Stronger statements when claiming audit exemption
- Restrictions on shortening accounting reference periods
The intention was to create a fully digital, more transparent filing system and reduce misuse of the Companies House register.
What’s happening now?
The government has confirmed:
- The April 2027 start date has been withdrawn
- The reforms are under review
- A final decision will be announced in due course
- Companies will receive at least 21 months’ notice before any changes take effect
For now, it is business as usual. Existing filing options for small and micro companies remain in place.
Do you need to switch accounting software?
There is currently no mandatory requirement to move to software-only filing.
That said, digital filing is clearly the long-term direction of travel. Most companies already use commercial software to prepare and submit accounts, and it generally improves accuracy, efficiency and security.
If you are reviewing your systems, we provide cloud-based accountancy software through our partnership with Xero. This allows you to manage your finances in real time, collaborate easily with us, and stay prepared for any future digital requirements, all without unnecessary disruption.
What should you do now?
In practical terms:
- There is no immediate action required
- There is no need to rush into new systems based on proposals that may change
- Keep an eye on updates, but avoid reacting to speculation
As always, the right approach depends on your business size, structure and future plans.
At CJM Associates, we focus on what actually matters to you. We’ll keep you informed of any confirmed changes and explain them in plain English, concentrating on the important points first.
If you would like clarity on how the current rules apply to your company, or you are considering upgrading your accounting systems, get in touch for a free initial meeting and fixed-fee quotation.