Running a business in the UK comes with understanding several laws and regulations. Because, obviously, you have to stay compliant. But do you know about the Companies House reform impact on businesses in the UK?
Well, the Companies House reform impact on businesses is becoming increasingly important for UK company directors. Yes, a series of changes introduced under the Economic Crime and Corporate Transparency Act 2023 are designed to improve the accuracy of company information, increase transparency, and help tackle economic crime.
Also, if you are running a limited company, you should know the reforms mean greater responsibility for keeping company information accurate, verifying identities and preparing for changes to accounts filing. If all this sounds complicated to you, don’t worry; simply read this guide.
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How Do Companies House Reforms Affect UK Businesses?
The Companies House reform impacts UK businesses in several key areas, including identity verification, registered office requirements and how companies file accounts. If you want to get more details about Companies House reform impact on businesses, the major reforms are explained as follows:
1. Identity Verification for Directors and PSCs
Identity verification is now a legal requirement as part of the Companies House reforms. Therefore, directors and people with significant control (PSCs) need to verify their identity according to the applicable transition arrangements and deadlines. This means businesses should ensure that their directors and PSCs understand their verification requirements and complete the process on time. Yes, it means if you are a director or PSC, you must also abide by these reforms.
2. Greater Responsibility for Accurate Company Information
One might question why reforms are made, right? Of course, the reforms strengthen Companies House’s role in checking and maintaining reliable information on the public register.
So, all businesses need to make sure that details such as directors, PSCs and registered office information are accurate and kept up to date. Thus, your registered office must also be an appropriate address in the part of the UK where the company is registered.
This is an important part of managing Companies House reform impact on businesses, particularly for companies that have historically taken a less structured approach to statutory compliance. Yes, it’s high time to set things right.
3. Major Changes to Accounts Filing From April 2028
While exploring Companies House reform impact on businesses, you should know that one of the biggest upcoming changes affecting limited companies is the reform of annual accounts filing.
From 1 April 2028, all UK registered companies will need to file annual accounts using commercial software in iXBRL format. Web-based and paper accounts filing routes will close. Ultimately, businesses should therefore start considering whether their current accounting systems and advisers are prepared for software-only filing.
If you think you need better accounting support, reach out to professional accountants who are well-versed with Companies House reform impact on businesses and know how to keep your business compliant.
What Is the Companies House Reform Impact on Small Businesses in the UK
The Companies House reform impact on small businesses could be particularly significant because filing requirements are changing. So, with bigger changes ahead, some important reforms seem right for UK businesses.
From April 2028:
- All companies must file annual accounts using commercial software in iXBRL format, as traditional paper and web-based filing routes will permanently close.
- Small companies and micro-entities will need to file a profit and loss account with Companies House.
- Eligible companies will have an option to opt out of publishing the profit and loss account on the public register.
- Companies will no longer be able to file abridged accounts.
- Companies claiming audit exemption will need to provide a strengthened eligibility statement.
Although these changes create additional compliance considerations, Companies House has given businesses more time to prepare before the reforms take effect.
Note: these updates can change over time, depending on certain factors, so always check updated data from the official page.
What Is the Companies House Reform Impact on Growing Businesses
No business is easy. And dealing with day-to-day operations and administration is already a lot. On top of that, the Companies House reform impact on businesses may be greater. As companies expand, appoint new directors, change ownership or deal with increasingly complex statutory obligations, you might need to be more proactive in handling your business.
Growing businesses should establish reliable processes for:
- Maintaining accurate company records
- Updating Companies House information promptly
- Managing director and PSC verification
- Keeping accounting records organised
- Preparing for software-based accounts filing
Early preparation can make compliance easier and reduce the risk of last-minute problems. So, you should start from today.
How Should I Prepare for Companies House Reform Impact on Businesses
If you are preparing for Companies House reform impact on businesses, consider taking these practical steps:
Review Your Company Records
First, check that your registered office, director details and PSC information are accurate.
Understand Identity Verification Requirements
After reviewing records, make sure relevant directors and PSCs know whether and when they need to complete identity verification.
Review Your Accounting Software
With software-only accounts filing becoming mandatory from 1 April 2028, businesses should start assessing suitable software or discuss filing arrangements with their accountant.
Stay Ahead of Filing Changes
Small companies and micro-entities should pay particular attention to the upcoming changes to profit and loss accounts and abridged accounts.
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The Bottom Line
The Companies House reform impact on limited companies goes beyond a simple change to filing forms. The reforms are changing how company information is verified, maintained and submitted. For many businesses, the best approach is to assess their current compliance processes now rather than waiting until new requirements become urgent.
Need help assessing the Companies House reform impact on businesses in the UK? CAIL provides professional accounting support to help you review your company records, prepare for upcoming filing changes and stay compliant with Companies House requirements.
Disclaimer: This article intends to provide general information on the Companies House reform impact on businesses.