If you’ve been following the changes coming out of Companies House over the past couple of years, you’d be forgiven for feeling a bit of whiplash.
In July 2025, the government confirmed a set of major changes to how companies file their annual accounts – mandatory software-only filing, the end of abridged accounts, and a requirement for small and micro-entities to publish their profit and loss figures publicly for the first time.
Those changes were due to take effect from April 2027. They’re no longer going ahead on that date.
Following pushback from small businesses, professional bodies, and MPs, Companies House has updated its official guidance to confirm that the accounts reforms are now “under review.” No replacement date has been set, and the government has committed to giving businesses at least 21 months’ notice before anything changes.
But – and this is the important part – not everything has been shelved. Some changes are still very much happening, and there’s a real risk of confusion if directors assume nothing applies to them until further notice. Here’s where things actually stand.
What’s Been Paused
The reforms that have been put on hold are specifically the account-related changes scheduled to come into effect from April 2027.
The official government statement says, “Changes to accounts filing will not be introduced in April 2027. The reforms are still under review and a final decision will be announced shortly. Companies will receive at least 21 months’ notice to prepare.”
These are the ones that would have affected what you file, how you file, and how much of your financial information becomes public.
Under the original plans:
- Software-only filing: all companies, including dormant ones, would have needed to file their accounts using commercial software. The Companies House WebFiling service and paper filing would have been scrapped for accounts
- Profit and loss disclosure: micro-entities would have had to file a balance sheet and a profit and loss account. Small companies would have needed to file a balance sheet, profit and loss account, directors’ report, and (where applicable) an auditor’s report
- End of abridged accounts: the option to file a simplified version of your accounts would have been removed entirely
For now, none of this is happening. The government has cited concerns about striking the right balance between improving transparency and avoiding unnecessary burden on small businesses.
Business Secretary Jonathan Reynolds reportedly felt the proposals didn’t fit with the government’s broader deregulation agenda.
It’s worth stressing that the reforms haven’t been scrapped – they’ve been paused. A revised timetable could still emerge, and the direction of travel at Companies House is clearly toward more transparency and digital filing.
But there’s no deadline to act against right now, and no reason to rush into buying new software purely because of these proposals.
However, since the government says they’ll give 21 months’ notice, you’ll have plenty of time no matter what happens.
What’s Still Going Ahead
While the accounts reforms are on hold, several other changes connected to the ECCTA are pressing ahead as planned. These are the ones that directors need to stay on top of.
First, the joint HMRC/Companies House filing service closes on 31 March 2026.
This is the free online service (sometimes called CATO) that allowed businesses to file their company tax return and annual accounts in one go. It’s been available since 2011, but Companies House and HMRC have confirmed it will permanently shut down.
From 1 April 2026, you’ll need to file your accounts and your company tax return separately. Company tax returns will need to be filed using commercial software – there will be no free HMRC web form for this.
If you currently use this service, you have limited time to sort out an alternative. You should also download and save at least the last three years of filed returns and accounts before the service closes, as you won’t be able to access your historical filings afterwards.
Second, identity verification is now mandatory. Since 18 November 2025, all new directors, PSCs, and LLP members must verify their identity before their appointment can be registered. Existing directors and PSCs are in a transition period, with the final deadline falling in November 2026. Without a verified identity, you won’t be able to file your confirmation statement.
Third, Companies House fees have increased. From 1 February 2026, the digital incorporation fee doubled from £50 to £100, and the confirmation statement fee rose from £34 to £50. Paper filings have seen even steeper rises. Read more here.
Who’s Most Affected by the CATO Closure
The closure of the joint filing service is probably the change that will catch the most people off guard, because it’s happening soon, and it affects a very specific group: directors who currently self-file using the free HMRC service.
If you already use an accountant to handle your company accounts and tax return, you’re unlikely to notice much difference. Most firms already file through commercial software and will simply adjust their processes behind the scenes.
It’s worth confirming this with your accountant, but in most cases you won’t need to do anything.
The people who need to act are:
- DIY filers: Directors who currently log in once a year, use the free HMRC form to file their accounts and company tax return, and don’t pay for any accounting software
- Dormant company owners: If you hold a dormant company and use the joint service to file simple dormant accounts alongside a nil tax return, you’ll need to find another way to do this
- Very small or low-margin businesses: Side projects, consultancies, and micro-entities where a yearly software subscription is a noticeable extra cost
- Companies on the edge of compliance: Directors who only just manage to keep up with filing deadlines now, and for whom any extra friction raises the risk of late filing penalties
For all of these groups, the closure is a prompt to review how filings are handled – and in many cases, it makes sense to think about whether professional support is more cost-effective than going it alone.
What You Should Do Now
The situation is a bit unusual – some changes have been paused while others are pressing ahead. Here’s a practical summary of what actually needs your attention:
- If you use the joint HMRC/Companies House filing service: Start looking for alternative software or speak to an accountant before March 2026. Download your historical filings now
- If you haven’t completed identity verification: Do it as soon as possible. The transition deadline is November 2026, but your actual deadline may be much sooner, depending on when your next confirmation statement is due
- If you were planning to buy new software specifically for the April 2027 changes: Hold off. There’s no confirmed date and no reason to invest in something based on proposals that may not go ahead in their current form
- If you file abridged accounts: You can continue to do so for now. The proposal to remove this option has been paused along with everything else
And regardless of what happens with the reforms, it’s good practice to make sure your company’s records at Companies House are accurate and up to date. The ECCTA has given Companies House real enforcement powers, and the scrutiny on filed information is only going in one direction.
How Double Point Can Help
There’s a lot of noise around Companies House at the moment, and it can be hard to tell which changes are confirmed and which are still up in the air.
At Double Point, we’re keeping a close eye on developments and helping our clients understand exactly what applies to them.
Whether you need help transitioning away from the joint filing service, sorting out identity verification, or simply want someone to handle your filings so you don’t have to worry about what changes next – our team of chartered accountants is here to help.
Book a free consultation with us today, and we’ll make sure you’re on top of everything that matters.