Key takeaways
- The government has paused the requirement for small companies and micro-entities to file profit and loss accounts at Companies House from April 2028.
- Companies can still file abridged accounts and fillet out their profit and loss account after 1 April 2028.
- From April 2028 all UK companies must file accounts in iXBRL format using commercial software. Web and paper filing of accounts will close.
- Other April 2028 changes include a strengthened audit exemption eligibility statement and a limit on shortening the accounting reference period.
- The pause follows a recommendation from the Small Business Regulatory Taskforce and is linked to a 'tell government once' ambition.
Companies House has paused the requirement for small companies and micro-entities to file profit and loss accounts from April 2028. The government announced the decision on 23 October 2026, following the Small Business Regulatory Taskforce. The mandatory move to filing accounts using commercial software is not paused, and still starts in April 2028.
What has been paused
The Economic Crime and Corporate Transparency Act 2023 was due to change what small companies report in their annual accounts. One planned change was that small companies and micro-entities would file profit and loss accounts with Companies House. The government has decided to pause that requirement while it considers alternative ways to simplify filing.
In practical terms, the government will:
- continue to allow companies to file abridged accounts
- keep the option for smaller companies to remove, or “fillet”, their profit and loss information from the accounts filed at Companies House after 1 April 2028
During the pause, the government will look at streamlining Companies House and HMRC filing processes under the “tell government once” ambition. It says it remains committed to its economic crime objectives.
What is not paused
The government reconfirmed its commitment to mandatory software filing of accounts and other planned reforms for April 2028.
| Change from April 2028 | Status |
|---|---|
| All companies file accounts in iXBRL format using commercial software | Going ahead |
| Web and paper filing of accounts closes | Going ahead |
| Strengthened eligibility statement for companies claiming an audit exemption | Going ahead |
| Component parts of accounts and reports filed together | Going ahead |
| Limit on how many times a company can shorten its accounting reference period | Going ahead |
| Small companies and micro-entities file profit and loss accounts | Paused |
The software requirement applies to companies that file their own accounts and to those that use third-party agents or accountants. Companies House web filing services remain available for non-accounts filings, including confirmation statements and updates to director details.
The accounting reference period limit
From 1 April 2028, a company will need to give a business reason if it wants to shorten its accounting reference period more than once in five years. The filing guidance says this change is subject to forthcoming regulations.
Why the government paused it
The Small Business Regulatory Taskforce found that Companies House requirements were among the burdens businesses cited most. Its report recommended reversing the decision to remove the small company exemption from filing full accounts, because HMRC already receives the profit and loss information.
The government’s response says it is pausing implementation while it looks at ways to streamline filing with HMRC. Read the wider context in the 25% admin burden cut.
What it means for accountants
Filing software. The software deadline is the larger change for most practices. Companies House publishes a list of software providers on GOV.UK. Check that your software supports iXBRL filing of the accounts types you prepare.
Fee conversations. The pause removes a planned disclosure change for small companies, but the move to software filing still brings costs.
Small company clients. Keep filing as usual. Abridged accounts and filleting continue to be available. Read our guide to abridged vs full accounts and how to file accounts with Companies House.
Audit exemption. Companies claiming an audit exemption will need a stronger eligibility statement. See our post on audit exemption plans.
Checklist for practices
- List clients still filing through WebFiling. They must move to software by April 2028.
- Choose a software route. Compare options against the accounts types you file.
- Update engagement letters. Include the software filing change and its cost.
- Tell small company clients about the pause. It removes a planned disclosure change.
- Note the other 2028 changes. Add them to your 2028 planning calendar.
Frequently asked questions
Do small companies have to file profit and loss accounts from April 2028?
No. The government has paused that requirement. Small companies can continue to file abridged accounts and fillet out the profit and loss account.
Is the move to software filing paused as well?
No. From April 2028 all UK companies must file accounts in iXBRL format using commercial software, including those that use accountants to file.
Will WebFiling close?
For accounts, yes. Web and paper filing systems will close for accounts filings. WebFiling remains available for confirmation statements and updates to director details.
What else changes in April 2028?
A strengthened eligibility statement for companies claiming an audit exemption, a requirement to file component parts together, and a limit on shortening accounting reference periods.
Sources
Rates, thresholds and rules in this guide were checked against HMRC and GOV.UK guidance on 1 November 2026. Tax rules change, so check the current position on GOV.UK or with a qualified adviser before acting. This guide is general information, not personal advice.