Companies House is undergoing its biggest reform in decades, with several changes already in place and more due to come into effect over the next few years. The aim is to improve the accuracy of company information, reduce fraud, and make the Companies House register more reliable.
For directors and small business owners, these reforms mean greater scrutiny, new identity verification requirements, and significant changes to how company accounts are filed. Understanding the changes now will help you prepare well in advance and avoid unnecessary compliance issues later.
Why Are Companies House Rules Changing?
The reforms form part of the Economic Crime and Corporate Transparency Act, which gives Companies House greater powers to verify information, challenge incorrect filings, and improve the quality of data held on the public register.
While these changes are designed to reduce fraud and increase transparency, they also introduce additional responsibilities for company directors.
Changes Already in Place
Several important changes have already taken effect.
Identity Verification
Directors and People with Significant Control (PSCs) are now required to verify their identity.
Once verified, each individual receives a personal code that links their identity to the company records held at Companies House. Keeping this information secure is now an important part of company administration.
Commercial Software Is Now Required
Since April 2026, HMRC’s joint filing service for company accounts and Corporation Tax returns has closed. Most companies now need to use commercial software to submit their accounts and Corporation Tax returns.
For many businesses, this has meant reviewing their bookkeeping systems and accounting software to ensure they remain compliant.
Greater Powers for Companies House
Companies House can now question, reject or request further evidence where information appears incorrect, inconsistent or suspicious.
This makes it even more important that confirmation statements, director details and company accounts are accurate before they are submitted.
What Is Changing From April 2028?
The next major phase of the reforms is expected to begin in April 2028. One of the biggest changes is that all companies will be required to file their accounts using commercial software.
Small companies and micro-entities will also be required to submit a Profit and Loss account to Companies House as part of their annual accounts. This has understandably raised concerns for many business owners who do not want sensitive financial information becoming publicly available.
Will Profit and Loss Accounts Be Public?
The good news is that current proposals allow small companies and micro-entities to opt out of publishing their Profit and Loss account on the public register. The accounts will still need to be submitted to Companies House and may be available to HMRC and other authorised bodies. However, customers, suppliers, competitors and members of the public should not automatically be able to view this information.
Other Changes to Be Aware Of
Alongside the new filing requirements, Companies House is also expected to introduce:
- The removal of abridged accounts.
- Clearer audit exemption statements.
- Restrictions on repeatedly shortening accounting periods.
Although these changes may seem relatively small, they all contribute to a more robust and transparent filing system.
How Should Small Companies Prepare?
The reforms are significant, but there is still plenty of time to prepare. Business owners should review whether:
- Directors and PSCs have completed identity verification.
- Personal verification codes have been stored securely.
- Bookkeeping records are accurate and up to date.
- Their accounting software is suitable for future filing requirements.
Taking action now will make future compliance much simpler.
Companies House reforms are changing how companies file information and how directors manage their legal responsibilities.
Identity verification, commercial filing software and enhanced Companies House powers are already in place. Further changes from 2028 will require all companies to file digitally, with small companies submitting Profit and Loss accounts as part of their annual accounts.
Preparing early will help avoid disruption and ensure your company remains compliant as the new rules are introduced.
If you’re unsure how the Companies House changes affect your business, Greystone Advisory can help. We’ll review your current processes, explain what’s changing, and make sure you’re ready well before the new requirements take effect. Contact us for further support.
