Small businesses to face new Companies House account filing rules from April 2028

After months of delays, the Government has finally confirmed how the Economic Crime and Corporate Transparency Act 2023 (EECTA) will change the way small businesses report their finances to Companies House.

The new rules take effect from 1 April 2028 and will affect small companies and micro-entities across the UK.


Profit and Loss (P&L) accounts required


Under the new rules, small companies and micro-entities will be required to file both a balance sheet and a Profit and Loss (P&L) account with Companies House for the first time.

However, following significant lobbying from business groups, the Government has dropped its original plan to make this information fully visible on the public register.

Businesses will instead be able to opt out of publication, keeping their financial details off the public-facing register.

Companies House has acknowledged the privacy and commercial risks that full disclosure would have created for smaller businesses.

Details of the opt-out process have not yet been confirmed, but further guidance is expected in due course.

Importantly, the opt-out only applies to public visibility. HMRC, Companies House and law enforcement agencies will still be able to access the information for fraud and financial misconduct investigations.


Abridged accounts will be scrapped


The option to file abridged accounts will be abolished entirely. This type of filing required formal shareholder approval and allowed key figures to be combined into broad categories.

It has long been a source of frustration for smaller businesses, so its removal is unlikely to be widely mourned.


New software requirements for filing


From April 2028, all UK-registered companies will need to file their annual accounts using commercial software that supports the Inline eXtensible Business Reporting Language (iXBRL) format.

This applies whether a business files its own accounts or uses an accountant or agent to do so.

The current web and paper-based filing systems will close for accounts submissions at the same time, though other Companies House services, such as confirmation statements and director updates, will remain available online.

Businesses should begin preparing well before the deadline to ensure their accounting records, filing processes and software are fully compliant. Seeking professional accounting and taxation services can help ensure your annual accounts are prepared accurately and submitted in line with the new Companies House requirements.


Other changes coming in 2028


The reforms also introduce a requirement for all parts of a company’s accounts and reports to be filed together in one submission.

Alongside this, there will also be a strengthened eligibility statement for companies claiming an audit exemption.

As Companies House continues to strengthen its compliance requirements, many businesses will benefit from company secretarial services to help manage their statutory obligations and ensure filings remain accurate and up to date.

Companies House has confirmed it will introduce a limit on how many times a business can shorten its accounting reference period, though this will require secondary legislation before it comes into force.


Time is shorter than it looks


Businesses now have 21 months to prepare. That is roughly equivalent to one full accounting period plus nine months.

For businesses that currently use paper or web-based filing, the switch to iXBRL-compatible software alone will take time to plan and implement.

If you need help preparing for the changes coming in April 2028, please get in touch with our team.

Are your finances at risk of cyber-attack? Planning for the worst

By Charlie Flockhart • October 5, 2026
According to the latest Hiscox Cyber Readiness Report, almost two in five small businesses in the UK suffered a successful cyber-attack in the last year, with each attack costing an average of £26,650. Globally, cyber incidents cause around 32 hours of operational disruption a year on average. Cyber-attacks are no longer exceptional events, being viewed more as recurring costs, so businesses must prepare themselves financially for the impact. How should you prepare your finances in advance of a cyber-attack? A cyber-attack is slowly and sadly becoming a reality for many SME owners across the UK. To prepare, business owners should assess the potential financial risk a cyber-attack poses and forecast cash flow to ensure their business can survive one. It could also be beneficial to value your data assets to estimate the worth of any lost revenue and recovery expenses. Business owners may also want to keep offline playbooks. These are secure, printed offline copies of critical financial contacts, account numbers and recovery protocols to ensure that your business has key information in the event of a cyber-attack. Additionally, your business should establish strict double-check procedures for unusual payment requests or changes to supplier details to prevent business email compromise. You should also factor cyber insurance premiums into your operational risk management to ensure that you are prepared for any eventuality. What should you do to get your finances back in check after a cyber-attack? Should the worst-case scenario happen, once you are back on track, the first thing you should do is speak with your accountant. Your accountant will help you to calculate the exact monetary value of damaged assets, lost revenue and stolen money so that you know exactly where your business stands. They will then review your financial data and your tax records to establish a baseline for recovery and determine if the business can continue or if restructuring is necessary. Accountants can also help during complex cyber insurance claims by submitting the required evidence to ensure fair financial assessments of the business interruption costs. Once you have received any insurance payments, an accountant can advise on the tax implications.  How can we help? Cyber-attacks are becoming more prevalent for businesses up and down the UK. That is why it is imperative that you receive advice on how you can best prepare your finances in a worst-case scenario. Our team of accountants can help you to prepare your business for a cyber-attack and in the event of a cyber-attack, we can help you pick up the financial pieces. Get in touch with our team for support with preparing your business for a cyber-attack.

Borrowing amongst SMEs is on the rise – preparing your business for finance

By Charlie Flockhart • October 5, 2026
According to UK Finance, gross lending to SMEs from the main high street banks reached £5.35 billion in the second quarter of 2026, the highest quarterly level recorded since the pandemic. Real estate and professional service firms drove much of this growth, while manufacturers and hospitality businesses borrowed less. How can loans help SMEs? A loan can often be a lifeline for SMEs in a financial rough patch. It can help a business bridge cash flow gaps in the short term, ensuring that it has enough money to cover payroll, rent and supplier obligations. It could also be the case that a loan can help to fund expansion to increase business opportunities or hire more staff. Additionally, loans can help business owners to retain ownership of the company rather than selling equity to investors. However, SMEs need to remember that a loan must be paid back with interest regardless of business performance. How should SMEs prepare for a loan? Preparing your business for a loan can often be a tricky process. First, you will need to gather two to three years of profit and loss statements alongside cash flow forecasts and up-to-date tax filings. Next, you will have to check and correct any errors that may be on your personal or business credit reports in order to optimise your credit profile before borrowing. You will then have to create a strong business plan outlining your core growth strategy and market opportunity. There should be a clear breakdown of how the funds will be used, linking every borrowed pound to revenue generation, as well as a risk mitigation section addressing potential economic downturns. You must consider the lender that you are selecting by comparing criteria across high street banks and alternative providers.  How can an accountant help? An accountant can be one of your most valuable assets when applying for finance. They can help to improve your financial record-keeping, build advanced financial models and stress-test your cash flow to give lenders greater confidence in your business. We understand that it is tough for SMEs to obtain funding at the moment. That is why our team can help you obtain the loan that you need. For support with accessing loans, get in touch with our team.

Medium-sized companies may qualify for audit exemption

By Charlie Flockhart • October 5, 2026
The Department for Business, Innovation, Science and Trade (DBIST) initiated a ‘modernising corporate reporting’ consultation on 7 September 2026, which closes on 30 November 2026. Under the proposed overhauls, many medium-sized companies may be exempt from mandatory audits. This consultation forms part of a wider Government pledge to cut administrative burdens on businesses by 25 per cent by 2029. What is being proposed? The Companies Act 2006 considers various company size categories to assess which reporting, audit and disclosure requirements apply. For medium-sized businesses wanting to access exemptions currently exclusive to small companies, they must not exceed two of the following three thresholds: Turnover of £54 million Balance sheet total of £27 million Average of 250 employees Under these exemptions, many businesses would no longer need to have an audit, provide cash flow statements or prepare consolidated accounts. Elsewhere, the proposals from DBIST include: Introducing an SME accounting standard Allowing companies to calculate employee numbers on a full-time equivalent basis Removing strategic report requirements for most medium-sized private companies Simplifying financial reporting rules Is it always smart to forgo an audit? While the proposals mean audits may become optional for some SMEs, forgoing an audit isn’t always the smartest move. An audit can often go one step further than simple compliance and financial reporting, providing insights and peace of mind that your numbers are accurate. Lenders also often rely on audited accounts when deciding how much to lend and at which interest rate. Likewise, when it comes to selling a business, buyers and investors often look at audited figures when conducting due diligence as they offer greater credibility. For any businesses mulling the exemption, it is important to evaluate long-term plans and whether spending money on an audit could have benefits. At the moment, these changes are part of an ongoing consultation and so may be subject to change in future. We will bring you further updates as they emerge. Speak to an accountant to evaluate whether an audit may be beneficial to your business.