The government has announced a major change to the way UK businesses must file their accounts with Companies House. These changes will impact filing methods, the level of detail required and, crucially, what the public will be able to see about your business finances.

Below is a summary of these changes. You can read the full government document on these changes on their website.

More of your company’s financial details will be available to the public

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One of the most significant changes announced means more of your company’s financial details will be publicly visible. Crucially, the list of available information will include your revenue and profit figures.

What is changing

• Micro-entities will need to file a balance sheet and profit and loss (P&L) accounts.

• Small companies must file a balance sheet, directors’ report, auditor’s report (if applicable) and a P&L account.

• Abridged accounts will be scrapped entirely, so you will no longer be able to file limited or reduced financial information.

In simple terms, all of this information will be available to the public, so there will be fewer opportunities to reduce financial disclosures.

Software-only filing mandatory from April 2027

From April 1^st 2027, UK companies will no longer be able to file annual accounts on paper or via the web filing service provided by Companies House.

Instead, all accounts will need to be filed through approved commercial accounting software.

What this means

• You must select and be using approved software before April 2027 – the earlier the better!

• Company directors who file manually or through the Companies House website will need to adjust their methods.

More accountability for audit exemption

Companies claiming exemption from a statutory audit will need to include a new director’s statement on the balance sheet, including the exact exemption being claimed and confirmation of qualification.

In other words, directors will have more personal accountability for audit exemption and must provide clearer evidence to the public on their exemption claims.

Limits on changing accounting periods

If you would like to shorten your company’s accounting reference period, you will be able to do this just once every 5 years without justification. A “valid business reason” will be required for more frequent changes.

This will have a big impact on year-end tax planning opportunities; we strongly recommend speaking to your tax advisor about this one!

How should you be preparing?

These changes will have considerable impact on the way businesses file their accounts, manage their taxes and present themselves financially to the public.

Here are some tips to help ensure you and your business are ready:

• Move your accounting to a suitable software provider ASAP (if you haven’t done this already). Ensure you use a digital accountant who is using the relevant software.

• If you prepare your own accounts, do some research or ask an accountant about the most suitable options.

• If you are an accountant, make sure you are prepared to provide software-only filing for all of your business clients.

• Expect to file more detailed accounts if you’re a small or micro-entity.

• Plan for additional transparency when budgeting and planning.

Our reaction to the announcement

The changes to Companies House filing rules will mean a big change for businesses everywhere, from those doing their own filings to those being filed by agents.

Although this means more disclosures for all companies, leading to greater detail being available on public record for all to see (including customers, suppliers and competitors), it also presents opportunities for businesses with the right mindset.

Additional detail can be used to benchmark performance, make changes and assess your position in the market. It will allow you to identify better customer segments and sales targets using the data provided by customers. It can also be used for acquisitions to find better targets for expanding companies or again strengthen yourself in your market to ensure you get the best possible value for your own exit or sale.

The new rules mean more financial disclosures that directors need to be aware of, but also greater opportunities for those ready to take advantage. We recommend speaking to your accountant today to make sure you have a plan.