Upcoming Changes to Small Company Filing Options by Companies House

Hey there! Let’s have a natter about some big changes coming to how UK companies file their accounts with Companies House. Whether you’re running a bustling business or managing a dormant company, these updates will affect you. So, grab a cuppa, and let’s dive into the nitty-gritty of what’s happening, why it’s happening, and what you need to do about it.

The Big Shift: Software-Only Filing

Companies House is moving towards a fully digital system, meaning that soon, all companies will need to file their accounts using software. This shift aims to make the filing process more efficient, secure, and transparent.By adopting software-only filing, Companies House hopes to improve the quality of data on the register and clamp down on economic crime.Changes to UK company law

Why the Change?

The move to digital is all about modernising the system. Paper filings and even some web-based methods are becoming outdated. Digital filings through software are faster, reduce errors, and enhance security. lus, they align the UK with international best practices.?

When Is This Happening?

The transition will be phased in over the next 2 to 3 years. Companies House plans to give at least 21 months’ notice before the changes become mandatory. However, there’s no need to wait; you can start using software to file your accounts now.

What This Means for Your Company

Finding the Right Software

To comply with the new requirements, you’ll need to find suitable software for filing your accounts. There are many providers offering a range of accounting packages, at varying costs. You can find a list of software options on the GOV.UK website.?

For Directors and Accountants

Whether you’re a director filing accounts yourself or you use an accountant or agent, everyone will need to adapt to this change. Ensure that whoever is responsible for your company’s filings is aware of the new requirements and has the appropriate software in place.

Changes for Small and Micro-Entity Companies

If you run a small or micro-entity company, there are additional changes to be aware of:

• Profit and Loss Accounts: You’ll need to file your profit and loss accounts. The specific details will be outlined in secondary legislation.?
• Directors’ Report: Small companies that don’t qualify as micro-entities will also need to file a directors’ report.?
• Abridged Accounts: The option to file ‘abridged’ accounts is being removed.

Audit Exemptions: Additional Statements Required

If your company is claiming an audit exemption, you’ll need to include an additional statement from the directors on the balance sheet. This statement must specify which exemption is being claimed and confirm that the company qualifies for it.?

What About Dormant Companies?

Even if your company is dormant, you’re still required to file annual accounts and confirmation statements with Companies House.  A company is considered dormant if it has had no significant transactions during the financial year. Significant transactions don’t include filing fees paid to Companies House, penalties for late filing, or money paid for shares when the company was incorporated.

Under the new rules, dormant companies will also need to use software to file their accounts. This should ensure consistency and accuracy across all filings, regardless of the company’s trading status.?

Steps to Take Now

1. Research Software Options: Look into the available software providers and choose one that suits your company’s needs.Ensure it supports the type of accounts you need to file.
2. Plan the Transition: While there’s a grace period, it’s wise to start the transition sooner rather than later. This gives you ample time to familiarise yourself with the new system and address any issues that arise.
3. Inform Relevant Parties: Make sure that everyone involved in your company’s filings, whether internal staff or external accountants, is aware of the changes and prepared to comply.?
4. Stay Updated:

Embracing the Digital Future

While change can be daunting, moving to software-only filing is a step towards a more efficient and secure system acording to Companies House. By embracing these changes early, you can ensure a smooth transition and avoid any last-minute hiccups.

Remember, these updates are designed to improve transparency, reduce fraud, and streamline the filing process, Although it’s not immediately clear how they will streamline the filing of dormant company accounts. By adapting now, you’re not only complying with the new regulations but also contributing to a more robust and trustworthy corporate environment in the UK.

So, let’s get ahead of the curve and make the move to digital filing. Your future self (and your company’s compliance record) will thank you!