The Way Small Companies File Annual Accounts Is Changing
Companies House are introducing changes to Small Company filing options. Small companies and micro-entities will be required to file their profit and loss accounts alongside their balance sheets with Companies House. Companies will no longer be able to prepare and file “abridged” accounts.
Additionally, paper filing will be discontinued, and all annual accounts must be filed electronically using approved software.
The changes are being introduced under the Economic Crime and Corporate Transparency Act 2023 to combat money laundering and other fraudulent activity.
Key Changes To Be Aware Of:
From 1 April 2027:
- Accounts must be filed digitally to Companies House using commercial software. This also includes dormant accounts. Web and paper filing options will no longer be available from this date.
- Small companies will need to include profit and loss accounts as part of their annual accounts, plus a director’s report. Micro-entity companies will also need to include profit and loss accounts as part of their annual accounts; however, a director’s report will not be necessary (but is optional).
What Is A Small Company?
When it comes to filing annual accounts, a company is classified as a small company if it meets two of the below criteria:
- It has a turnover of £10.2 million or less
- It has £5.1 million or less on the balance sheet
- It has 50 employees or less
What Is A Micro-Entity?
A company is classified as a micro-entity if it meets two of the below criteria:
- It has a turnover of £632,000 or less
- It has £316,000 or less on the balance sheet
- It has 10 employees or less
At Alextra, we can prepare and file your annual accounts making you fully compliant with the new regulations. If you wish to discuss any of the above points further, please contact us for further advice.