Major Companies House filing changes are confirmed and will start rolling out from April 2027. These changes are part of a wide-ranging shift to fully digital reporting, following closely after Making Tax Digital for VAT and Income Tax (MTD VAT and MTD IT).
These aren’t isolated updates-they form a critical part of the UK’s strategy to improve transparency, modernise reporting, and fight economic crime.
What’s Changing?
- Digital-only filing from April 2027 – Paper submissions and the WebFiling system will no longer be accepted. All companies must file accounts digitally using approved software.
- Mandatory iXBRL tagging – All accounts must be tagged in iXBRL (Inline eXtensible Business Reporting Language) to make financial data machine-readable and easier to analyse.
- Full profit & loss required for small companies – Small and micro-entities will need to file full profit and loss accounts and directors’ reports. Abridged accounts will no longer be permitted.
- Audit exemption disclosure required – Companies claiming audit exemption must explicitly state the basis for the exemption on their balance sheet.
- Identity verification for directors and PSCs – Company directors, People with Significant Control (PSCs), and filing agents must verify their identity with Companies House to prevent fraud.
- Shorter filing deadlines – Companies will have less time to submit their accounts. Exact filing deadlines are to be confirmed.
Final Thought & Next Steps
Why You Should Act Now
Some have raised concerns that these changes will increase the burden on businesses, but this is a real opportunity for those who act early.
It’s an opportunity:
- Gain deeper insights from your financials.
- Modernise your accounting systems for efficiency.
- Automate processes and reduce manual effort.
- Build stronger, faster reporting that benefits your business.
- Take advantage of digital tools already available if you are MTD-compliant.
- Improve financial transparency to secure funding more easily.
- Enhance management reporting with up-to-date, reliable information.
But only if you act early:
- We expect a heavy workload advising clients on compliance.
- Firms delaying may struggle to meet new standards and deadlines.
If you are already complying with MTD for VAT and preparing for MTD for Income Tax, these changes should follow naturally. The processes, systems, and software needed to comply with Companies House reforms will build on the digital reporting foundations many businesses already have in place.
The whole world is moving digital, and this is the next logical step. There are opportunities to save time, reduce errors, and make better decisions with faster, more accurate information.
How Botham Accounting Can Help:
We’re a digitally enabled firm, well placed to guide you through this transition.
My experience: I’ve led numerous cloud accounting transformations, system migrations, compliance reviews, and iXBRL readiness projects for SMEs.
Software & cloud accounting specialists: Our team, headed by Paul Evans, has 26 years’ experience in system integration, Xero and Sage certifications, and tailored digital reporting solutions.
We understand what is required, we have done it before, and we can make sure your business is fully ready. We can also help you review your current systems to check they are fit for purpose and to identify where improvements, upgrades, or automation could save you time and provide better information.
Context: MTD for VAT and MTD for Income Tax
MTD for VAT has been in place since April 2019 for VAT-registered businesses with turnover above the VAT threshold, and since April 2022 for all VAT-registered businesses. It requires VAT returns to be filed using digital records and MTD-compatible software. This was the first step in HMRC’s digital strategy, setting the foundation for more regular, software-driven reporting.
MTD for Income Tax will follow from 6 April 2026. It will require quarterly digital tax updates for landlords and sole traders with gross income over £50,000 (dropping to £30,000 in 2027 and £20,000 in 2028). This brings earlier deadlines and the need for MTD-compatible software.
If you are already meeting MTD for VAT requirements and preparing for MTD IT, you are well on your way to being ready for these changes.
Final Thought & Next Steps
This is more than compliance- it’s a strategic opportunity to optimise your data, improve operations, and stay ahead. But only if you’re prepared.
Next steps:
1. Audit current software and tag readiness – we can help.
2. Contact us now – before system demand rises.
3. Work with us to plan integration, training, and compliance.
At Botham Accounting, we’re already helping clients prepare. If you act now, you’ll be ahead of the curve.
Get in touch today to secure your digital transition support
Find us at our offices:
London – 99 Bishopsgate
Nottingham – 3-5 College Street
South Yorkshire – The Innovation Centre
