Big Changes Coming for Small Business Accounts Filing — What You Need to Know About Companies House Reforms

If you run a small or micro company, there have been some significant Companies House reforms recently around how you file your annual accounts, and some welcome news on privacy. Here’s a plain-English breakdown of what’s changing, what’s been U-turned, and what it means for you in practice.

The Original Plan: Compulsory Profit & Loss Disclosure

Last year, Companies House announced that small and micro businesses would be required to include a profit and loss account as part of their annual accounts filing. Until now, this level of financial detail has only been required from medium and large companies.

The rationale for these Companies House reforms was increased transparency across the corporate landscape, and easier spotting of economic crime. But for many small business owners, the prospect of their turnover and profit margins being freely accessible to anyone who cared to look on the Companies House public register was, understandably, not welcome news.

The U-Turn: An Opt-Out Option for Privacy

The good news is that Companies House has listened to concerns from the small business community and partially reversed course. Businesses will now be given the opportunity to opt out of having their profit and loss account shown on the public record.

It’s worth understanding exactly what “opting out” means here, as there’s an important distinction:

•       Your profit and loss account will still need to be submitted and be available to Companies House and Law Enforcement agencies, they will hold it on file.

•       However, if you opt out, this information will NOT appear on the publicly searchable Companies House register.

•        In other words, it won’t be visible to competitors, suppliers, customers, or the general public browsing your company’s filing history.

This is a meaningful privacy win for small and micro businesses who don’t want every Tom, Dick, and Harry being able to peek at their financial performance. For many owner-managed businesses, that information is commercially sensitive, and keeping it private can be vital when it comes to negotiations, tenders, and competitive positioning.

The Timeline Has Moved With Changes Now from 1 April 2028

Alongside the opt-out announcement, businesses have been granted an additional year to prepare. These changes are now set to come into force from 1 April 2028.

While that might feel like plenty of time, the additional requirement below means it’s worth starting to think about your processes sooner rather than later.

The Big Practical Change: Software-Only Submissions

This is the change that will affect the most people in a day-to-day sense: from April 2028, all accounts must be submitted to Companies House using accounting software. The era of logging into Companies House Web Filing and manually typing your figures directly into an online form will be over.

Who does this affect most?

This change will primarily impact businesses who currently file their own accounts directly through Companies House without using an accountant or dedicated software. If you’ve been doing your own filings manually, you’ll need to either:

•       Adopt accounting software that can produce and submit compliant accounts directly to Companies House, or

•        Work with an accountant who uses compliant software on your behalf.

There may be some limited self-filing options available for those who genuinely want to remain hands-on, but the detail on this is yet to be confirmed. What is clear is that the days of the purely manual, DIY submission are numbered.

What This Means for You, and How an Accountant Can Help

If you’re already working with a good accountant who uses professional software, the chances are these changes will be handled seamlessly on your behalf. But if you’re currently going it alone, now is an excellent time to explore your options.

A good accountant doesn’t just submit your accounts, they can:

•        Help you understand the opt-out process and whether it’s right for your business

•        Get you set up on the right accounting software for your needs (such as Xero, QuickBooks, or FreeAgent)

•        Ensure your annual accounts are prepared accurately and filed on time

•        Give you peace of mind that you’re meeting your compliance obligations as the rules evolve

Making Tax Digital is already reshaping how businesses interact with HMRC, and now Companies House is moving in the same direction. Getting ahead of these changes, rather than scrambling to adapt at the last minute, is always the better approach.

Need help getting ready for these changes?

At Zenith Digital Accountants, we specialise in helping small and micro businesses navigate exactly this kind of change, from software onboarding and digital transitions to full accounts preparation and Companies House filing. If you’d like a free initial consultation to talk through what these changes mean for your business, we’d love to hear from you.

Get in touch today, we’re here to make your numbers work for you.

This article is for general information purposes only. Please consult a qualified accountant for advice tailored to your specific circumstances