Under the Economic Crime and Corporate Transparency Act 2023, significant changes to the way companies file their annual accounts will come into effect starting 1 April 2027.
Key changes:
- Software-Only Filing: All company accounts, including dormant accounts, must be filed using commercial software. This applies to companies that submit their own accounts and professionals such as accountants who submit accounts on behalf of their clients. Paper and web-based filing options for submitting accounts will no longer be available. Companies should have already received notice of this in July 2025.
- Small and Micro-Entity Filings: From 2027, small and micro-entities will be required to submit specific financial documents, including balance sheets and profit and loss accounts. The option to file ‘abridged’ accounts will no longer be available.
- Audit Exemption: Companies claiming audit exemption will need to provide an enhanced statement on their balance sheet confirming eligibility.
- Accounting Reference Periods: Companies wishing to shorten their accounting reference period more than once in five years will need to provide a valid business reason.
To ensure compliance, companies must adopt suitable software solutions for filing accounts. This move supports the government’s goal of reducing economic crime and modernising the filing system in line with international standards.
For advice on preparing for these changes, contact us today.
About the author
Victoria Holland is a Partner and Head of the Corporate & Commercial team at RIAA Barker Gillette. She works with a broad range of clients, including large multinational companies, start-ups, SMEs, partnerships, investors, and entrepreneurs. She has extensive experience providing transactional and commercial contract advice across various industries, such as automotive, biotech, property management and investment, financing, software and technology.