April 2028 Accounts Changes: What Micro Entities Must File

From April 2028, the rules for filing micro-entity accounts in the UK are expected to change significantly. Companies House will require micro-entities to submit a profit and loss account alongside their annual accounts, although eligible companies will be able to opt out of making that information publicly available. Companies will also need to use commercial software to file their accounts.

These reforms were confirmed by the government on 9 June 2026, giving businesses additional time to prepare. For directors who currently file simplified micro-entity accounts, understanding the new requirements now can help avoid last-minute problems. Micro Entity Accounts provides information for UK businesses preparing and filing their company accounts.

What the Government Confirmed in June 2026

Companies House announced that the planned accounts reforms would take effect from April 2028 rather than April 2027. The decision followed engagement with businesses and other stakeholders about the potential impact of the changes.

The main changes affecting micro-entities include:

• Profit and loss accounts: Micro-entities will need to deliver a copy of their profit and loss account to Companies House.

• An option to opt out of public display: Eligible micro-entities will be able to request that their profit and loss information is not published on the public register.

• Software-only accounts filing: Companies will need to file annual accounts using commercial software in iXBRL format.

• End of paper accounts filing: Paper-based accounts filing will no longer be available from the implementation date.

• Changes to abridged accounts: The option to file abridged accounts will be removed under the announced reforms.

The changes form part of wider measures under the Economic Crime and Corporate Transparency Act 2023. Their aims include improving the quality of information held at Companies House, strengthening transparency and helping tackle economic crime.

For micro-company directors, the most important point is that the new rules will affect both the information submitted and the method used to file it.

Source: Companies House announcement on accounts changes.

Profit and Loss Filing for Micro Entities

Under the current micro-entity filing arrangements, qualifying companies can generally submit a simplified balance sheet to Companies House without filing their profit and loss account publicly.

From April 2028, micro-entities will be required to prepare and deliver a copy of their profit and loss account to Companies House. This represents a significant change for directors who have relied on the existing filing exemptions.

A profit and loss account summarises a company's financial performance over an accounting period. It generally records income, expenses and the resulting profit or loss.

For example, a small consultancy might have annual sales of £85,000 and operating expenses of £52,000. Its profit and loss account would show the relevant income and expenses, helping explain how the company arrived at its financial result.

The exact presentation and figures will depend on the company's accounting records and applicable reporting requirements.

Opting Out of Public Display

The government has confirmed that micro-entities will have the option to opt out of publishing their profit and loss information on the public register. This is intended to address concerns about commercial sensitivity and the disclosure of financial information by smaller businesses.

However, opting out of publication does not mean a company can avoid preparing or submitting its profit and loss account.

Companies House, HMRC and law enforcement will still be able to access the information where required. The opt-out is about public display, not exemption from the filing obligation.

The detailed process for opting out is still to be confirmed. Directors should therefore avoid relying on assumptions about eligibility, forms or submission procedures until official guidance is published.

Micro-entity directors should also remember that the profit and loss account is only one part of their financial reporting responsibilities. They must continue to maintain appropriate accounting records and meet their other statutory obligations.

Software-Only Filing and the End of WebFiling for Accounts

From April 2028, companies will need to file their annual accounts with Companies House using commercial software that supports the required Inline eXtensible Business Reporting Language format, commonly known as iXBRL.

iXBRL combines financial information with digital tags that make the data easier for systems to identify, process and analyse.

The change will affect companies that prepare and file their own accounts as well as those that use an accountant or another filing agent.

Companies House has confirmed that its web-based and paper-based systems for accounts filing will close from the implementation date. Its web services will remain available for other types of company filings, such as confirmation statements and director-detail updates.

What Micro-Entities Should Do About Software

Directors should start reviewing their filing arrangements before the deadline. In particular, they should:

• Check whether their existing accounting software supports Companies House accounts filing in the required iXBRL format.

• Ask their accountant or filing agent which software they intend to use.

• Confirm whether the software supports the company's specific accounts type.

• Review subscription fees and any additional costs for accounts preparation or submission.

• Keep their company authentication details and accounting records organised.

Not every accounting package supports every filing requirement. Simply using software for bookkeeping or preparing accounts does not necessarily mean it can submit the final accounts to Companies House in the required format.

Businesses that currently rely on paper filing or an online filing route should allow time to choose and test an appropriate alternative.

What Stays the Same Until April 2028

Although the reforms will change the accounts filing process, companies must continue to meet their existing statutory obligations before the new requirements take effect.

Annual accounts deadlines still matter. Most private limited companies must file their accounts with Companies House within nine months of the end of their financial year. Different rules can apply to a company's first accounts and in certain other circumstances.

Accounting records must be maintained. Directors should continue recording income, expenses, assets, liabilities and other relevant financial transactions throughout the year.

HMRC filing obligations remain separate. Companies generally need to submit their accounts as part of their Company Tax Return, together with the relevant Corporation Tax information. The Companies House filing and HMRC filing are separate obligations, with different requirements and deadlines.

Dormant companies still have filing responsibilities. A company that is dormant for Companies House purposes must generally continue filing the accounts required for its status. Directors should not assume that dormancy removes every statutory obligation.

Directors remain responsible for compliance. Using an accountant or software provider can help with preparation and submission, but directors should ensure that their company's accounts are accurate, approved and filed on time.

The practical position is that companies should continue following the rules currently applicable to their accounting period while preparing for the new requirements.

How to Prepare: A Checklist

Micro-entity directors do not need to wait until 2028 to start preparing. Reviewing existing processes now can make the transition easier and reduce the risk of errors.

Use this checklist to assess your company's readiness.

• Review your company's status. Confirm whether it qualifies as a micro-entity for the relevant accounting period and whether any exceptions apply.
• Keep bookkeeping up to date. Maintain complete records of sales, purchases, expenses, assets, liabilities and business transactions.
• Understand your profit and loss figures. Make sure your records can support the income and expenses that will need to be reflected in your accounts.
• Check your accounting software. Ask your provider whether it will support the Companies House iXBRL filing requirements that apply from April 2028.
• Speak to your accountant or filing agent. Confirm how they plan to handle the new filing rules and whether your current service needs to change.
• Review filing costs. Check whether a software subscription, additional module or professional service will create extra costs.
• Monitor official updates. Follow Companies House guidance on the opt-out process, software requirements and implementation arrangements.
• Keep deadlines in your calendar. Continue tracking your company's Companies House and HMRC filing dates while preparing for the new system.
• Plan ahead for the transition. Avoid leaving software selection, record reviews and filing arrangements until the deadline is approaching.

The government has confirmed the broad direction of the reforms, but some implementation details—including how micro-entities will opt out of public display—remain subject to further guidance. Directors should check official updates before making final decisions about their filing arrangements.

Final Thoughts

The April 2028 accounts changes will affect how UK micro-entities prepare and submit their annual accounts. The key changes are the requirement to deliver a profit and loss account, the option to opt out of public display and the move to commercial software for accounts filing.

Preparing early gives directors time to review their records, choose suitable software and discuss the changes with their accountant. Keeping up to date with Companies House guidance will also help businesses understand the final procedures as they are confirmed.

Micro Entity Accounts provides information and support for UK businesses dealing with micro-company accounts, statutory filing and related accounting requirements.

Visit Micro Entity Accounts to learn more about our services.

For more information, explore our accounting services and resources.

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