The Economic Crime and Corporate Transparency Act 2023 (‘ECCTA’) introduces reforms to the way companies file their annual accounts with Companies House.
Following consultation with stakeholders, the Government has confirmed that these reforms will take effect from 1 April 2028.
The main changes are:
- all companies will be required to file accounts using commercial software;
- small companies and micro-entities will be required to file profit and loss accounts; and
- certain technical changes will be made to the accounts filing regime.
Companies House will continue to publish further guidance as implementation progresses.
What is changing?
Mandatory software filing
Currently, certain companies can file their accounts using Companies House online services or paper forms.
From 1 April 2028:
All companies will be required to file their annual accounts at Companies House using commercial software.
The web and paper filing routes for accounts will close.
Companies will therefore need to ensure that they have suitable software in place before the implementation date.
Profit and loss accounts for small companies and micro-entities
Historically, smaller companies have benefited from reduced filing obligations and, in some cases, have not been required to file profit and loss accounts publicly.
Under the reforms:
Small companies and micro-entities will generally be required to file profit and loss accounts at Companies House.
The Government has recognised concerns regarding the public availability of commercially sensitive information and has confirmed that smaller companies will have the ability to opt out of publication of their profit and loss information.
What companies need to do
Companies should begin preparing for the changes ahead of the 1 April 2028 implementation date.
Companies that do not currently file accounts using software will need to:
- identify the type of accounts they are required to file;
- ensure they have a Companies House authentication code;
- obtain a presenter account with Companies House;
- select suitable commercial software; and
- ensure their processes are ready for software filing.
How Floix can help
For organisations managing multiple entities, this change represents an opportunity to move away from manual filing processes and fragmented records and towards a centralised company secretarial solution.
Floix helps the company secretarial function manage statutory compliance across its entire group, including:
- accounts filings across multiple entities;
- managing filing deadlines;
- maintaining a central record of company information;
- reducing reliance on spreadsheets and manual processes; and
- providing visibility across complex group structures.
Although the changes do not take effect until 1 April 2028, Companies House is encouraging companies to prepare well in advance. Moving to software now allows teams to embed processes gradually, rather than having to make changes immediately before the deadline.
If you would like to understand how Floix can help your organisation prepare for the future of Companies House filing, we would be happy to arrange a demonstration.
