United Kingdom – Companies House Confirms Mandatory Software Filing for Annual Accounts

The UK government has confirmed a significant reform of company accounts filing requirements under the Economic Crime and Corporate Transparency (ECCT) Act 2023. From the 1^st of April 2028, all UK registered companies will be required to submit annual accounts using commercial software, marking the end of web-based and paper filing routes.

The reforms also introduce new reporting obligations for small companies and micro-entities and form part of the wider Companies House transformation programme.

Regulatory Background

The reforms are designed to enhance the quality, transparency and integrity of information submitted to Companies House.

Key changes include:

• Mandatory filing of annual accounts through commercial software
• Removal of paper filing and web-based accounts submissions
• Mandatory filing of profit and loss accounts by small companies and micro-entities
• Enhanced audit exemption statements
• Consolidation of accounts filing requirements into a single filing package
• Restrictions on shortening accounting reference periods

Although originally expected to take effect in April 2027, implementation has been delayed until April 2028 to provide businesses with additional preparation time.

Applicability and Scope

The new requirements apply to all UK registered companies, including:

• Private limited companies
• Small companies
• Micro-entities
• Companies filing independently
• Companies using accountants, corporate service providers or filing agents

Effective Date

The reforms will take effect on the 1^st of April 2028.

From this date, Companies House will no longer accept annual accounts submitted through paper or web-based filing services.

Practical Considerations and Ongoing Obligations

Companies should begin preparing well in advance of the implementation date by:

• Assessing existing filing arrangements
• Confirming the appropriate software solution for future filings
• Ensuring company authentication information is available and up to date
• Engaging accountants or filing agents where required
• Reviewing how the new profit and loss filing requirements may affect disclosure obligations

Companies already using software-based filing should obtain confirmation from their advisers that their existing processes will meet the new requirements.

Risks of Non-Compliance

Further guidance on enforcement measures is expected. However, companies that fail to comply with annual accounts filing obligations may be exposed to the existing Companies House late filing and compliance regime.

How Mercator® by Citco (Mercator) Can Help

Mercator is actively preparing for implementation of the new filing framework and can support clients through the transition. Services include:

• Assessment of filing readiness
• XBRL/XML conversion services
• Accounts preparation and submission support
• Ongoing Companies House compliance assistance

For assistance, please contact mercator@citco.com