New Companies House rules for directors – what you need to know

From April 2027, Companies House is overhauling the way businesses submit their accounts and the type of information they’ll need to provide.

So, what does this mean for you as a company director? Here’s a breakdown of what’s changing – and how it could impact your business.

From April 2027, all companies will have to submit their accounts to Companies House using commercial accounting software. The paper and web-based options for filling – widely adopted by limited company directors – will be withdrawn entirely.

This applies to directors who file accounts themselves, and companies who use third party agents or accountants to file their annual accounts. 

To find out which software will be suitable for the type of accounts you’re filing, you can use this GOV.UK tool.

Before we get into the forthcoming changes to the accounts that can be submitted, it’s important to note the difference between small companies and micro-entities.

Your business will be considered a small company if it meets any two of the following criteria:

• A turnover of £15 million or less
• £7.5 million or less on its balance sheet
• 50 employees or less

Your business will be considered a micro-entity if it meets any two of the following criteria:

• A turnover of £1 million or less
• £500,000 or less on its balance sheet
• 10 employees or less

Currently, micro-entities can prepare and file simpler accounts, known as abridged accounts. However, from April 2027, companies will no longer be able to prepare and file abridged accounts.

Instead, micro-entities will be required to file a copy of their balance sheet and profit and loss account.

Small companies will be required to file a copy of balance sheet, directors’ report, auditor’s report (unless exempt – find out here) and profit and loss account.

Being a limited company director is much harder than it used to be. It often feels that this way of setting up a business is being squeezed from all sides and, unfortunately, these planned changes will only add to the pressure directors are facing.

For some, particularly those who operate on tight margins, with limited administrative support or who are digitally excluded, this requirement introduces new cost and complexity – without offering any tangible benefit in return.

Similarly, the removal of abridged accounts – designed to simplify the reporting process for our smallest businesses – will likely only increase the administrative burden placed on company directors, increasing the complexity and time spent on filing.