What is happening?
From 1 April 2027, all companies will be required to file their accounts electronically. They will also need to include profit and loss accounts from 1 April 2027.
Filing accounts by software only
All accounts must be filed using commercial software from 1 April 2027.
This includes dormant accounts.
It applies equally to directors who file accounts themselves AND to companies who use accountants (or other third-party agents) to file their accounts for them.
Companies House have already emailed all registered email addresses notifying each individual company of these changes. If you have not received this email for your company, please check which email address you have registered with Companies House.
Companies House web and paper filing routes will be closed for accounts filings. If you do not already use commercial software, consider making the change now, don’t wait for 2027! Commercial software is already available and most types of accounts can be filed using software (depending on the software package you select). Companies House has compiled a list of software providers (although does not endorse any particular provider).
Software-only accounts filings is the first step towards filing accounts in a digital format and is aimed at being a more efficient and secure way to file accounts. Companies House state it will create a single, cost effective, sustainable, traceable way to file.
Changes to small company filing options
As well as electronic filing, from 1 April 2027 the filing options for small and micro entity companies are being streamlined. This means that the option to file “abridged” or “filleted” accounts will be removed. Small companies will have to file a balance sheet, directors’ report, auditor’s report (unless exempt) and profit and loss account. Micro-entities will have to file a balance sheet and profit and loss account (but essentially can choose not to file a directors’ report).
Theoretically, this additional financial information included within accounts may make it easier for small companies to avail themselves of finance or do business with other third parties in the future (as more information about their financial position will be available in the public domain).
Changes when claiming an audit exemption
If your company wishes to claim an audit exemption, the directors will be required to include an enhanced statement on their balance sheet, specifying which exemption is being claimed and confirming the company qualifies for it.
Accounting reference periods
Lastly, if your company wishes to shorten its accounting reference period, a business reason will be required if your company wishes to do this more than once in a 5-year period.
Key point to take away?
All companies will need to find suitable software before the existing filing options are closed (and to be prepared for the additional requirements detailed above if you are a small or micro-entity company).
HaysMac is ready to support any clients who still file paper accounts, is fully prepared for these changes and can assist your company in complying with the new requirements. If you are impacted, please feel free to reach out to your HaysMac contact if you have any questions or need assistance.
