Companies House Reforms

Companies House Reforms: At the end of February 2022, the Government published its final white paper on proposed reforms to Companies House, following a consultancy period with the major accounting bodies.

Proposed reforms to modernise Companies House

The key changes are as follows:

Small companies will no longer be able to file abridged accounts. Instead, they will file a profit and loss account and director’s report. Additionally, the option to file ‘filleted’ accounts will be removed.
Micro entities will have to file a profit and loss account. However, they will retain the option not to file a director’s report.
Dormant companies will have to file a statement confirming their eligibility.

Should the new Companies House proposals become law, then all companies will be required to file accounts digitally.

Although the shortening of filing deadlines has been debated, this does not form part of the proposed reforms.

Filing deadlines will stay as they are, for now, at least.

Institute of Chartered Accountants in England & Wales

The Institute are not supporting the proposed requirement, that small and micro companies file a profit and loss account.

The Institutes’ View.
Publication of a company’s profit and loss account allows sensitive and commercial information to be available and accessible to their competitors.

What action do I need to take?

This is currently a proposal, therefore, no action is required, just yet.

Should these changes do go ahead we will ensure that we, and our clients, are prepared for them.

As trusted advisors we update our clients on all the latest requirements, therefore, ensuring essential plans can be put in place, in a timely manner.

Using the latest accounting software, our technical knowledge is constantly up to date. Therefore, the reports we produce consistently meet the requirements for accurate filing to Companies House.

Shaw Austin are a firm of Chartered Accountants based in Chester supporting independent business throughout the UK. We take the headache out of business accounting and taxation by providing our clients with a personal service.

This article includes tax rates and allowances correct on date of publishing – tax rates and allowances can change from year to year. This is a general article to assist readers. Professional advice should always be taken in respect of your personal circumstances.

Published May 2022