The way UK companies submit their yearly accounts is about to change. Companies House has confirmed that from 1 April 2028, businesses will no longer be able to file accounts on paper or through its basic online filing service. You can read the full official GOV.UK announcement for the complete details of the reform.
Instead, accounts will have to be prepared and filed using approved commercial accounting software, and submitted in iXBRL format. iXBRL is an electronic tagging system for financial information that makes it much easier to read and process.
This change will have the greatest impact on companies that continue to use paper records, manual bookkeeping or simple online filing. The deadline is not immediate, but the sensible move is to use the remaining time to check current systems and get ready.
Every Company Size Is Covered
The software-only rule is not just for large organisations. Small companies, micro-entities and dormant companies all fall within it too.
Hiring an accountant will not remove the obligation either. Directors of limited companies remain personally responsible for making sure their accounts are correct, filed on time and submitted through compatible software.
There is also a change to profit and loss reporting. For the first time, small companies and micro-entities will need to include this information alongside their annual accounts.
The government has said these smaller businesses will be able to keep their profit and loss figures off the public Companies House register. Even so, the data will still be shared with Companies House and other authorised bodies.
The practical takeaway is straightforward. Every figure in a set of accounts needs to be accurate, dependable and backed by well-kept financial records.
Leaving It Late Can Cause Filing Failures
Companies that put off getting ready could find themselves unable to file once the rules apply.
Without compatible software, a business may have no valid way to submit its accounts at all. Submissions can also be turned away if they arrive in the wrong format or carry incorrect digital tags.
A rejection is much riskier if there’s already a deadline for filing. But failure to meet the deadline may lead to late filing penalties.
Continuous non-compliance has more serious ramifications. Directors may be liable for legal action, and over time the company might be struck off the register.
That’s why software checks and record changes shouldn’t be put off till the last minute. Preparation reduces the risk of technical problems, incorrect submissions and penalties which could have been avoided.
Steps Small Businesses Can Take Now
A good starting point is to review how the business currently handles its bookkeeping, prepares its accounts and sends information to Companies House.
Owners should check whether their existing software can file directly with Companies House and produce accounts in the required iXBRL format. Those leaning heavily on spreadsheets, paper or manual methods may need to move to a more capable digital system, alongside reviewing their payroll processes and wider tax planning arrangements.
If an outside accountant handles the changes, it might be advisable to raise the changes with the outside accountant directly. Ensure they are ready for software-only filing and will have the systems ready by 1 April 2028.
If that can be done early, then there is time to improve bookkeeping procedures and close bookkeeping gaps and software or reporting problems before the next deadline.
Getting Ready for Digital Filing with Lanop
Lanop Business and Tax Advisors can help UK businesses adjust to the new Companies House system.
Our team supports bookkeeping, payroll, accounts preparation, filing through compatible software, and the link between Companies House accounts and Corporation Tax reporting. Whether you run a start-up, work as a sole trader, or manage an established company, we can guide directors through their duties and highlight weak spots in the way their accounts are currently handled. Read more about our team and how we work.
Acting before the rules become compulsory makes the whole switch far smoother. With tidy records, suitable software and expert support, businesses can cut the risk of rejected accounts, missed deadlines and other avoidable compliance problems.
Lanop can make sure your financial records and filing arrangements are ready well before the new digital requirements take effect. Check out our FAQs for common questions, or get in touch with our team today.
