Companies House Accounts Reforms: Implementation Update

The government has confirmed how the Companies House accounts reforms introduced under the Economic Crime and Corporate Transparency (ECCT) Act 2023 will be implemented.

The reforms are designed to improve transparency, strengthen corporate reporting requirements, and support efforts to tackle economic crime. Following a pause in implementation last year and extensive engagement with businesses and stakeholders, the government has confirmed it will proceed with the planned changes, while introducing some adjustments to address concerns raised during consultation.

What is changing?

The reforms will introduce several new requirements for companies filing annual accounts with Companies House, including:

• Small companies and micro-entities will be required to file profit and loss accounts, bringing them into line with other company types.
• All companies will be required to file accounts using commercial software, ending the current range of filing methods.
• A number of additional technical amendments will also be introduced to improve the quality and consistency of information held on the Companies House register.

Key changes following stakeholder feedback

To help businesses prepare and address concerns about transparency and administrative burden, the government has announced two important changes to the original proposals:

1. Opt-out from profit and loss publication

While small companies and micro-entities will be required to file profit and loss accounts, they will be able to opt out of having those accounts published on the public register.

Further details on how businesses can exercise this option are expected to be confirmed in due course.

2. Extended implementation timeline

The reforms will now take effect from April 2028, rather than April 2027.

This revised timetable gives businesses additional time to prepare, providing one full accounting year plus a further nine months (21 months in total) before the new requirements come into force.

What does this mean for credit professionals?

The reforms represent a significant shift in corporate reporting requirements and could improve the quality of financial information available through Companies House.

Credit professionals should monitor further guidance as it is released and begin considering how the changes may affect financial assessments, compliance processes, and the use of Companies House data within credit risk management.

CICM will continue to monitor developments and provide updates as further implementation details become available.