UK’s Companies House has announced that, effective from 1 April 2027, all companies and Limited Liability Partnerships (LLPs) will be required to file their accounts using commercial software.  

The move, part of the Economic Crime and Corporate Transparency Act (ECCTA) 2023, mandates that accounts be tagged using iXBRL (Inline eXtensible Business Reporting Language). 

From the same date, Companies House will streamline account filing options for small and micro-entity companies.  

Directors and LLP members are also urged to review their data and verify their identity before an upcoming autumn deadline. 

The move was welcomed by Meg Ogunsola, the global director of entity management solutions at Vistra, a business advisory company.  

Ogunsola said: “Today marks a milestone in Companies House reforms and the UK’s fight against fraud. The confirmation of an Autumn deadline for directors, PSCs and LLPs to verify their identity signals a radical change in the governance of corporate transparency and accountability. Yet official figures show that just 2.86% of those expected to complete ID verification have done so. 

“Further confirmation that companies will be required to file accounts using commercial software from April 2027 onwards, combined with the ‘failure to prevent fraud’ offence coming into force in just two months, highlights the urgency for compliance, and risk of severe financial, operational and reputational consequences. Companies House has stepped up, and it is time for firms to do the same and act now.” 

After 1 April 2027, the executive agency, which is backed by the Department for Business and Trade, will close its web filing service and paper filing route for accounts, although these will remain open for other statutory filings.  

The filing requirements apply to all UK registered companies, LLPs, eligible overseas entities with UK operations, charities registered as companies, and Community Interest Companies. 

Companies House has prepared a stakeholders guide to assist companies and their advisers with the transition to software-only accounts filing.  

The introduction of this requirement means companies and LLPs must ensure their accounts are correctly structured and tagged using iXBRL, a global standard combining HTML with XBRL tags for machine and human readability. 

Companies House stressed on the importance of sourcing appropriate software and recommends understanding the software’s tagging features on test accounts before the mandatory deadline.  

A software look-up tool is available to help companies compare and select suitable software products. 

For small and micro-entities, the following streamlined filing options will be available from 1 April 2027: micro-entities must file their balance sheet and profit and loss account, while small companies must file their balance sheet, directors’ report, auditor’s report (unless exempt), and profit and loss account. Abridged accounts will no longer be permissible. 

Companies claiming an audit exemption must provide an additional statement from directors on the balance sheet, specifying the exemption claimed and confirming qualification.  

Companies House will also limit the frequency of shortening accounting reference periods, requiring a business reason for more than one change within five years.