Directors need to prepare for company accounts changes from Companies House, which will take effect from 1 April 2027.
Digital software
Directors who currently submit their company accounts themselves will no longer be able to file by paper or use the Companies House web service. From 1 April 2027, company accounts will need to be filed using digital software.
- Directors will need to use a commercial software product, adding to the cost of running a limited company and highlighting the value of tax planning for directors.
- The Companies House web service will remain available for other filings, such as confirmation statements and director updates.
HMRC will also require commercial software for filing company accounts and tax returns from 1 April 2026. Ideally, the software chosen should handle filing for both Companies House and HMRC.
Filing options
Companies House will streamline accounts filing for micro-entities and small companies from 1 April 2027:
- Micro-entities and small companies will need to file a profit and loss account.
- Small companies will need to file a directors’ report.
- Abridged accounts will no longer be allowed for filing.
Shareholders should be aware that more company information will become publicly available under these company accounts changes.
Despite the Companies House announcement, uncertainty remains over whether the profit and loss filing requirement will begin on 1 April 2027.
Financial year-end changes
Currently, companies can shorten their financial year-end without restriction. Companies House will now restrict this change to once every five years unless a valid business reason applies. This mirrors the existing rules for lengthening a financial year.
Directors can start exploring suitable software options here.