What is changing
The Economic Crime and Corporate Transparency Act 2023 reforms how companies file accounts. The Department for Business and Trade has signalled that the main accounts changes will take effect from April 2027. Dates have moved before, so check the latest on GOV.UK and Companies House.
What it means for micro-entities
- Profit and loss account on the public record. Micro-entities will no longer be able to leave the profit and loss account out of the filed accounts.
- Directors' report. A short directors' report is expected to be required.
- Software-only filing. Paper filing and the legacy WebFiling service for accounts are expected to end, so accounts must be filed through approved software.
- iXBRL tagging. Accounts need to be digitally tagged, which accounting software and accountants handle.
- Audit exemption statement. The balance sheet will need to state which audit exemption is being used.
Confirmation statement due?
We file your yearly confirmation statement for a fixed fee. The £50 Companies House fee is included.
Order a confirmation statementGet accounts quoteWhat stays the same
- The micro-entity size thresholds, which rose from April 2025 to turnover £1 million, balance sheet £500,000 and 10 employees.
- Your deadlines: nine months after year end for private companies.
- The separate Company Tax Return to HMRC.
Early adoption
Voluntary early filing under the new rules has been signalled as possible from late 2026, with new FRS 105 taxonomies being released in stages. Do not rush. Wait until your software or accountant confirms support.
How to prepare
- Tidy bookkeeping. Public profit and loss figures need to be accurate. See why bookkeeping matters.
- Decide on software. Choose software that supports iXBRL filing. See best accounting software.
- Review what competitors can see. Your turnover and profit will become visible. Think about how that affects pricing and negotiations.
- Ask your accountant which systems they will file through.
We will update this guide as dates are confirmed. Our accountants prepare accounts to the current rules and will move to the new format when it opens.
Need help
We prepare and file micro-entity accounts for a fixed fee. Order online or read the profit and loss guide.
A timeline of what to watch
| Date | Development |
|---|---|
| April 2025 | Micro-entity thresholds rise to £1m turnover and £500k balance sheet |
| November 2025 | Director identity verification becomes mandatory for new appointments |
| Late 2026 | Voluntary early filing under new rules signalled, with new taxonomies released in stages |
| April 2027 | Government has signalled commencement of the main accounts reforms |
Dates have been moved before. Treat anything beyond the thresholds and identity verification as planned, not guaranteed.
What it means for pricing and privacy
When your profit and loss account is public, customers, suppliers and competitors can see turnover and profit. Some businesses will need to review how they present their margins in negotiations.
What not to do
- Do not buy new software only because of the changes before checking it supports the new filing format.
- Do not change your year end purely to avoid the new rules. It may not work and may complicate your tax.
- Do not assume small companies are unaffected. Abridged accounts are also expected to end.
What we are doing
We prepare accounts to the current rules and will move clients to the new format when filing opens. If you want to talk about the impact on your business, get in touch.
Frequently asked questions
Will micro-entities have to file a full set of accounts from 2027?
The government has signalled that the profit and loss account must be filed publicly, along with a short directors' report and the balance sheet. Confirm details closer to the date.
Do the changes affect my 2026 accounts?
Probably not, because they apply to accounts filed after the commencement date. Check Companies House for the final rules.
Do these changes apply to dormant companies?
The reforms are aimed at all companies filing accounts, including dormant ones, but details for each category should be checked when finalised.
Will filing become more expensive?
Preparing a profit and loss account for the public record adds little work for most micro-entities, but fees may change. Ask your accountant.
Keep reading
How to Prepare Micro-Entity Accounts Step by Step
Preparing micro-entity accounts means gathering your records, drawing up a balance sheet and profit and loss account under FRS 105, adding the required notes and filing them before the deadline. Here is each step.
Micro-entity accountsProfit and Loss Statement for a Micro-Entity Explained
A profit and loss statement shows income less costs over a year and ends with your profit or loss. Micro-entities need one for HMRC today, and for Companies House from the reforms signalled for April 2027.
Micro-entity accountsHow Filing Micro-Entity Accounts Works in the UK
Filing micro-entity accounts means two separate submissions: your accounts go to Companies House and your Company Tax Return goes to HMRC. Both have their own deadlines, and missing either one costs money.