Some major changes to company filings are coming our way in April 2027, and it’s going to catch thousands of business owners off guard.
The government has confirmed that every company must switch to commercial software for filing their accounts – the free online service that most small businesses rely on is being scrapped entirely.
But that’s not all. Small companies will also need to publish their profit and loss figures publicly for the first time, ending decades of financial privacy for micro-entities and small businesses.
Your turnover, your profit margins, your financial performance – all of it becomes public record, searchable by competitors, suppliers, customers, and anyone else who’s curious.
Here’s what’s definitely happening, what might change, and what you need to do to prepare.
Two Key Dates You Can’t Miss
- 31 March 2026: HMRC and Companies House close their free joint filing service (CATO – Company Accounts and Tax Online) permanently. If you currently file your company tax return and accounts together using this free service, you have just over a year to find an alternative.
- 1 April 2027: All remaining free filing routes close. This includes the standalone Companies House WebFiling service and paper filing for accounts.
If you’re using the joint HMRC/Companies House service, your deadline is March 2026 – much sooner than most people realise. If you use the standalone Companies House WebFiling service, you have until April 2027.
The Big Change: Software-Only Filing
From April 2027, Companies House is going fully digital for company accounts. The change affects every single business entity required to file accounts with Companies House:
- All UK-registered companies, regardless of size
- Limited Liability Partnerships (LLPs)
- Eligible overseas entities with UK operations
- Charities registered as companies
- Community Interest Companies (CICs)
That’s over 4 million businesses, from one-person consultancies to major corporations. There are no exceptions based on company size, turnover, or complexity.
So, here’s what’s disappearing by April 2027:
- CATO joint filing service with HMRC (closes March 2026)
- Companies House WebFiling service (closes April 2027)
- Paper filing for accounts
And here’s what’s staying available:
- WebFiling for other company information (confirmation statements, director changes, etc.)
- Paper forms for non-account filings
- All the commercial software options that already exist
The key point here is that if you currently use any free government services to file your accounts, you need to find an alternative.
If you’re already using accounting software like Xero or QuickBooks, you’re probably fine – but check your systems. If you work with an accountant, clarify what they’re doing.
The Technical Side: iXBRL Tagging
All accounts must be filed using iXBRL (Inline eXtensible Business Reporting Language), which combines readable HTML with machine-readable tags. This allows the same document to be read by both humans and computers.
Companies House emphasises that businesses need to ensure “the underlying data within a set of accounts is correctly structured and tagged using iXBRL.” This isn’t something you can bodge together – the software needs to do this properly or your filing will be rejected.
The good news is that proper accounting software handles this automatically. The bad news is that you need to understand how your chosen software’s tagging works.
Companies House recommends testing the software’s tagging features on test accounts well before the mandatory deadline to build familiarity with the process.
Your Software Options
Full accounting software packages like Xero, QuickBooks, Sage, or FreeAgent handle everything from bookkeeping to filing. For example, Xero Tax already lets you submit accounts directly to Companies House.
Accountant services where professionals handle the filing using their own software. You’ll still be legally responsible for the accuracy of your accounts, but they manage the technical side. Many accountants are already using software for most of their clients.
Companies House provides a software lookup tool to help you compare options, but it’s not particularly good.
The More Controversial Change: New Disclosure Requirements
As of April 2027, the privacy that small companies have enjoyed for decades will come to an end. The rules around what information you must file publicly are changing dramatically.
The changes stem from the Economic Crime and Corporate Transparency Act, designed to crack down on shell companies and money laundering. But legitimate small businesses are getting caught in the crossfire.
A freelance consultant who set up a limited company for tax efficiency will suddenly have their annual income visible to clients. A small manufacturer’s profit margins become transparent to competitors who can use that information to undercut them.
Here’s what you need to know:
- Micro-entities (those with a turnover of under £632,000 and assets of under £316,000) currently file minimal information. From 2027, they must file both their balance sheet and profit and loss account, including full turnover figures.
- Small companies (with a turnover of under £10.2 million and assets of under £5.1 million) can currently file abridged accounts that conceal sensitive information. This option disappears entirely. They’ll need to file balance sheet, directors’ report, auditor’s report (unless exempt) and profit and loss account.
- All companies will no longer be able to prepare and file abbreviated or “abridged” accounts. Full disclosure becomes mandatory.
- Even dormant companies that don’t trade will need to file profit and loss accounts, though these will typically show zero activity.
Enhanced Audit Exemption Rules
Companies claiming audit exemptions face stricter requirements. Directors must provide an additional statement on the balance sheet specifying which exemption they’re claiming and confirming the company qualifies for it.
This adds another layer of director responsibility and potential liability if exemptions are claimed incorrectly.
The Forgotten Change: Accounting Reference Periods
One change that’s flying under the radar affects how often companies can change their year-end dates. Currently, companies can shorten their accounting reference period as often as they like – a useful tool for tax planning.
From 2027, companies can only shorten their accounting reference period once every five years unless they can provide a valid business reason for more frequent changes. This removes the flexibility that many businesses use for tax optimisation.
If you regularly adjust your company’s year-end for tax planning purposes, this change could have real implications for your strategy.
The Potential Government U-Turn
Despite all these changes being officially confirmed and published on government websites, reports suggest Business Secretary Jonathan Reynolds plans to reverse the requirement for small companies to publicly disclose their profit and loss figures. “This will not happen as long as Jonny is in place,” an ally told the Financial Times. “It doesn’t fit with our plans to cut regulation.”
Industry figures have welcomed the potential reversal. Seb Wallace, founder of Triple Point Ventures, warned that forcing small companies to publish their turnover and profit figures could “push people into the grey market” and discourage entrepreneurs from incorporating in the UK.
Investors worry that public disclosure of financial performance could give large clients disproportionate leverage over small suppliers.
But this is just speculation and unofficial briefings. The official government policy still shows both changes going ahead as planned – the switch to software-only filing AND the requirement for micro-entities and small companies to file their profit and loss accounts publicly.
What You Need to Do Now
Here’s a quick checklist to work out if you need to do anything, and what to do:
- If you’re using the joint HMRC/Companies House service, you have until March 2026 to find an alternative.
- If you’re using the standalone Companies House WebFiling service, you have until April 2027.
- If you use an accountant, check they’re prepared for the changes and have suitable software in place. Ask specifically about iXBRL tagging capabilities and whether they’ve tested their systems.
- Review your year-end planning. If you regularly adjust your accounting reference period for tax purposes, the new restrictions might affect your strategy.
- Monitor government announcements. The software filing change is definitely happening, but please keep an eye out for official confirmation regarding the disclosure requirements.
At Double Point, we’re helping clients prepare for these changes and identify the best software solutions for their specific circumstances.
We stay current with all regulatory developments and can ensure your business remains compliant while making the most of improved digital systems.
Book a consultation with us today to discuss how we can help your business prepare for these changes and optimise your compliance processes.
