The Economic Crime and Corporate Transparency Act (2023) (‘The Act’) was implemented to reform the role of Companies House and improve transparency over UK companies and other legal entities. Its purpose is to strengthen the UK business environment, support national security and disrupt economic crime, all while aiming to deliver a more reliable companies register to support commercial activity. The Act modernises both Companies House and the broader legal framework to address contemporary challenges.
The Act represents the most significant reform of Companies House since the introduction of corporate registration in 1844; equipping the registrar with greater powers and enabling a more proactive role in ensuring the UK remains an attractive and secure place to conduct business.
The Act gives Companies House the more powers to disrupt economic crime and support economic growth. Over time, the measures aim to improve transparency and provide more accurate and trusted information on the registers.
Under The Act there will be new responsibilities for:
- all new and existing company directors
- people with significant control of a company (PSCs)
- anyone who files information on behalf of a company
Due to the significance of the changes, they will be introduced in phases over the coming years.
The government first set out reforms for Companies House accounts in the Economic Crime and Corporate Transparency Act 2023 but had yet to announce how these changes would be implemented.
As of 9th June 2026 the government has now announced how they plan to implement the reforms under the Act. The announcement included how companies will report information and what information they report when filing their annual accounts with Companies House.
Following consultation with stakeholders, the Government has confirmed its intention to proceed with the reform, subject to some key amendments:
- The reforms will now take effect from April 2028. This represents a one-year deferral from the previously indicated implementation date of April 2027, allowing additional time for companies and software providers to make the necessary preparations.
- The requirement for small companies and micro-entities to file profit and loss accounts with Companies House will be introduced. However, in response to concerns regarding commercial sensitivity and the potential impact on investment prospects, such companies/entities will be permitted to opt out of publishing this information on the public register. Companies House, law enforcement agencies, and HMRC will retain access to the submitted information regardless of where a company/entity opts out. Further details regarding the opt-out mechanism are to be provided in due course.
Additional reforms to accounts filing include:
- The requirement for all companies to file their annual accounts via commercial software.
- All UK registered companies will be required to file their accounts in Inline eXtensible Business Reporting Language (iXBRL) format.
- The removal of the option for companies to file abridged accounts.
- The requirement for a strengthened eligibility statement requirement for all companies claiming an audit exemption.
- The requirement for component parts of the accounts and reports to be filed together.
Secondary legislation will also be introduced to limit the frequency with which a company may shorten its accounting reference period, and also to introduce annotations on the public register where a company fails to comply with a notice relating to its accounts under the Companies Act 2006.
From April 2028, companies seeking to shorten their accounting reference period more than once within a five-year period will be required to provide a substantive business justification.
How Clapham & Collinge Can Help
We will help you navigate the new software requirements, manage director responsibilities, and protect sensitive financial data using the register opt-out mechanisms.
Offices:
Norwich — 01603 693500
Sheringham — 01263 823398
North Walsham — 01692 660230
Email: enquiries@clapham-collinge.co.uk
The information in this article is for general guidance only and should not be treated as legal advice. It is not a substitute for obtaining advice tailored to your circumstances. While we aim to ensure accuracy at the time of publication, laws and guidance may change. Clapham & Collinge LLP accepts no liability for any loss arising from reliance on this content. For personalised advice, please contact our client relations team to book an appointment.