Changes to Company Accounts on the Horizon

From April 2027, directors will no longer be able to file company accounts using paper forms or the Companies House web service. Instead, they must use commercial filing software. This will apply even if the director handles the accounts themselves without an agent. The main implications are:

• Directors must choose and pay for appropriate digital software, which introduces an additional cost to running a limited company
• The Companies House web portal will remain available for other filings, such as confirmation statements or changes to company officers

It's also worth noting that HMRC will require the use of commercial software from 1 April 2026 for filing company accounts and tax returns. Directors should therefore ensure that any software selected is compatible with both Companies House and HMRC requirements.

A helpful starting point for finding compatible software can be found here:
https://www.gov.uk/software-company-accounts/y

Forrester Boyd partner, Philip George said, ‘With these changes, companies can expect greater scrutiny and more transparency. Planning ahead and selecting the right software early will be key to a smooth transition. This is a timely opportunity to review your year-end processes and ensure your business is fully prepared.’

Alongside the move to software-only filing, Companies House will simplify the options available for micro-entities and small companies from 1 April 2027:

• Micro-entities and small companies will have to file a profit and loss account
• Small companies will also be required to submit a directors’ report
• Abridged accounts will no longer be accepted

These changes mean that more financial information will be accessible to the public via Companies House. Shareholders and stakeholders should be aware of this increased transparency.

While Companies House has announced these changes, there remains some uncertainty as to whether the profit and loss account requirement will definitely come into force by April 2027.

Currently, companies can shorten their financial year end as often as they like. Under the new rules, this will be limited to once every five years, unless there is a valid business reason for doing so more frequently. This brings the rules in line with the existing restrictions on lengthening the year end.