News

From April 2027 all companies will be required to submit their accounts to Companies House using commercial software – the option to file using paper or web-based alternatives will no longer be available.

In addition, abridged accounts can no longer be filed for micro-entities.

Small company or Micro-entity

A business is classed as a small company if it meets 2 of the following conditions:

• Turnover of £15 million or less
• £7.5 million or less on balance sheet
• 50 employees or less

A business is classed as a micro-entity if it meets 2 of the following conditions:

• Turnover of £1 million or less
• £500,000 or less on balance sheet
• 10 employees or less

Filing requirements from April 2027

Micro-entities will be required to file at Companies House

• a balance sheet
• profit and loss account

Small companies will be required to file at Companies House:

• a balance sheet
• profit and loss account
• directors’ report
• auditors’ report (if the company is not exempt)

Whatever your company requirements, all filings must be made digitally using software.

Why the change?

The move to software is seen as an important step in improving data quality and the accuracy of the data held on the register and is being introduced under the Economic Crime and Corporate Transparency Act 2023.

It is hoped that the use of software will speed up processing times and enable Companies House to spot and prevent fraudulent activity more effectively.

The availability of profit and loss accounts will help improve conditions for companies accessing credit and provide transparency and thus confidence for others who wish to do business with a company.  It should also minimise the risk of intentional misuse of minimal disclosure used to hide money laundering and other fraudulent activity

Spriggs & Co Limited already use software to submit accounts to Companies House and have the systems in place to comply with the changes.

For more information on Corporate Tax, please click here, or contact us.