Companies House accounts filing changes: what charities need to know

Companies House has confirmed that significant changes to company accounts filing requirements will take effect from 1 April 2028.

While the reforms will affect all companies, charitable companies that currently prepare and submit their own statutory accounts could face some of the biggest challenges.

The changes form part of the Economic Crime and Corporate Transparency Act and represent a major shift towards fully digital filing, with new requirements that may lead many charities to reconsider how their annual accounts are prepared and submitted.

A revised timetable

Many of the changes were originally announced in June 2025 and scheduled to take effect from April 2027. However, following concerns raised by businesses, advisers and representative bodies regarding the additional compliance burden and costs, the government postponed implementation by a year.

The new measures will now be introduced from April 2028, giving organisations additional time to prepare. 

What do the reforms mean for charities?

Digital filing will become mandatory

The most significant change for many charitable companies is the move to mandatory software-based filing.

From April 2028, Companies House will no longer accept paper accounts or filings submitted through its existing web-based service. Instead, all accounts must be filed digitally using compliant software and submitted in iXBRL format.

While many charities already use specialist accountants, such as Kreston Reeves, to prepare and file their statutory accounts, a significant number of charitable companies continue to prepare their own year-end accounts, often using spreadsheets, before submitting the information directly to Companies House.

Under the new regime, all charitable companies will need access to software capable of producing compliant statutory accounts and submitting them in the required format.

For many charitable companies, this could mean:

• investing in specialist accounts production software; 
• obtaining additional technical expertise and training; or 
• engaging professional advisers to prepare and file statutory accounts on their behalf.

As a result, some charities that currently manage the process internally may find professional support becomes the most practical and cost-effective option.

The profit and loss account requirement is unlikely to affect most charities

One of the most publicised changes is the requirement for all companies, including small and micro entities, to file a profit and loss account with Companies House.

For charitable companies, however, the impact is expected to be limited. Charities are already required to prepare and file a Statement of Financial Activities (SOFA), which provides a comprehensive analysis of income, expenditure and fund movements and is publicly available through charity reporting requirements.

A particular concern for trading subsidiaries

Many charities operate wholly owned trading subsidiaries to undertake commercial activities that sit outside the charity’s primary purpose activities.

These subsidiaries often qualify as small companies or micro-entities and will therefore be directly affected by the new rules for filing profit and loss accounts, although Companies House has confirmed that these accounts can be withheld from public inspection.

Trustees should ensure that both the parent charity and its trading subsidiaries are preparing for the reforms together. Using compatible accounting software across the group may simplify reporting and reduce administration.

Other changes

Additional reforms due to take effect from April 2028 include:

• the removal of the option to file abridged accounts; 
• restrictions on the frequency with which a company can shorten its accounting reference period; 
• enhanced declarations regarding eligibility for audit exemption; and 
• a requirement for all elements of the accounts filing to be submitted together.

Why are these reforms being introduced?

The reforms are part of the government’s wider efforts to strengthen the integrity of the Companies House register and tackle economic crime.

By requiring more detailed financial information and introducing mandatory digital filing, Companies House aims to improve the quality, consistency and reliability of the information available to regulators and enforcement agencies.

While the objectives are understandable, the practical impact on many charitable companies should not be underestimated.

Preparing for 2028

Although April 2028 may seem some way off, charities should begin reviewing how accounts are currently prepared and filed, for the charity itself and for any subsidiary companies within the group.

The move to mandatory digital filing means that charities currently preparing accounts in spreadsheets and filing directly with Companies House may need new software or professional support to comply with the new requirements. Trustees and finance teams should assess whether their current systems will remain fit for purpose and whether additional software, training or professional support will be needed.

Early planning will help trustees and finance teams avoid last-minute compliance issues and ensure that statutory filing obligations continue to be met efficiently and accurately.

If you would like to discuss how these changes may affect your charity, or how we can assist you with the preparation and filing of your financial statements, please get in touch.