By Samantha Laird

Solicitor

29 July 2025

Insights News

From 1 April 2027, Companies House has announced that all UK companies must file their annual accounts using compliant software, in an iXBRL (Inline eXtensible Business Reporting Language) format. Paper and web-based filing options for annual accounts will no longer be accepted, although these formats will remain available for other statutory filings (such as confirmation statements and director updates).

The new filing requirements will apply to all UK registered companies (including small and micro entities), LLPs, eligible overseas entities with UK operations, charities registered as companies and community interest companies.

Under current legislation, companies qualifying as small or micro can take advantage of reduced filing requirements, meaning that these entities are exempt from filing their directors’ report, profit and loss account and, where applicable, their audit report. From 1 April 2027, these exemptions will no longer be available, meaning both micro and small entities will be required to file their profit and loss account and audit report (except if audit exempt), and small entities will also need to file their directors’ report. The aim of these changes is to ensure more financial information on small and micro entities is available on the public register.

Audit exemption provisions will not be changing under the new rules. However, the information that will need to be disclosed to be eligible for an audit exemption will be enhanced, specifically stating any exemption that is being taken and confirming eligibility for such an exemption.

Furthermore, there are no current restrictions on the number of times an entity can shorten its accounting reference period. This will be amended so that an accounting reference period can only be shortened once every five years, unless an appropriate business reason is provided.

The new annual accounts rules will mean significant change for many entities, and Companies House has noted that directors should immediately start to consider the various options that will be available going forward, including whether to purchase software or to engage a third-party agent to assist with the preparation and submission of accounts in the new format.

The move towards software filing is being introduced as part of a broader reform package under the Economic Crime and Corporate Transparency Act 2023. It is viewed as a critical step in improving the accuracy and quality of data on the register by reducing errors and ensuring consistency. It will also speed up processing times and assist Companies House in detecting and preventing fraud more effectively.

Companies House will release further information on the new provisions over the coming months.

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