The UK government recently introduced important changes to how businesses file their company information. These changes were set out in the Economic Crime and Corporate Transparency Act 2023 (ECCTA).

Initially, one of the key changes required small companies and very small businesses (known as micro-entities) to publicly share their profit-and-loss (P&L) accounts starting on 1 April 2027.

However, on 3 July 2025, the government decided to pause this change. They also paused plans to stop businesses from filing shorter, abridged accounts. This decision was made to avoid putting too much pressure on small businesses.

What Changes Have Been Paused?

• Public filing of detailed P&L accounts for small businesses and micro-entities has been paused. This change will now be reviewed again by the government.
• Plans to end abridged (shortened) accounts have also been paused and will be reconsidered during the review.

Important: The government might restart, adjust, or completely remove these rules after their review. Stay alert for updates.

What Changes Will Still Go Ahead?

• Filing accounts using software:
  From 1 April 2027, all companies (including dormant ones) must file accounts online using approved software (iXBRL format). Paper and WebFiling submissions will no longer be accepted.
• Verifying directors’ identities:
  • From 8 April 2025, directors and People with Significant Control (PSCs) can voluntarily verify their identities.
  • From autumn 2025, new directors and PSCs must verify immediately. Existing directors will have 12 months.
  • Verification will happen via GOV.UK One Login or an authorised agent.
• Stronger enforcement by Companies House:
  More powers to reject incorrect filings, share data with other agencies, and help reduce fraud.

New Company Size Definitions (from 6 April 2025)

Companies will be classified as ‘micro’ or ‘small’ if they meet at least 2 out of 3 of the following limits:

Micro-entities:

• Turnover up to £1 million
• Balance sheet total up to £500,000
• Up to 10 employees

Small companies:

• Turnover up to £15 million
• Balance sheet total up to £7.5 million
• Up to 50 employees

What Should Liverpool Businesses Do Now?

• Switch to approved filing software early (start in 2026 to avoid delays).
• Begin identity checks for directors and PSCs now; make it part of your hiring process.
• Continue using abridged or micro-entity accounts formats (for now).
• Stay updated, as paused rules may restart or change later.
• Double-check all filings — Companies House is enforcing stricter accuracy.

How Excel Accountants Can Help

• Support with transitioning to the required online filing software.
• Help with identity verification for directors and PSCs.
• Advise on the most suitable accounts format for your business.
• Provide timely updates and alerts about Companies House rules.

Book a free consultation today to ensure your business is ready for these changes and only shares what is legally necessary.