Changes to company accounts filing requirements at Companies House
A guide to the latest Companies House filing reforms, what has changed, and how to prepare your practice.
Written by Lena Hanna—Trusted CPA Guidance on Accounting and Tax. Read Lena's full bio
Published Thursday 11 June 2026
Table of contents
Key takeaways
- The Economic Crime and Corporate Transparency Act 2023 (ECCTA) has already delivered significant changes at Companies House, including the closure of the CATO joint filing service, substantial fee increases, and mandatory identity verification for directors and persons with significant control (PSCs).
- Planned reforms to accounts filing, including software-only filing, mandatory profit and loss disclosure for small companies, and the abolition of abridged accounts, were officially paused in January 2026. No new implementation date has been set, and companies will receive at least 21 months' notice.
- Late filing penalties remain in force and range from £150 to £1,500 for private companies, with automatic doubling for consecutive years of late filing. Public company penalties are significantly higher.
- Preparing now by reviewing filing processes, ensuring identity verification compliance, and adopting reliable accounts production software will put your practice and your clients in a strong position when the paused reforms resume.
What has changed so far at Companies House
Since the ECCTA received Royal Assent on 26 October 2023, Companies House has rolled out a series of reforms that are already in effect. These changes affect day-to-day filing workflows and carry practical implications for how you manage client compliance.
CATO and WebFiling closure
The CATO (Company Accounts and Tax Online) joint filing service closed on 31 March 2026. Companies House WebFiling for annual accounts also closed on the same date. If your practice or any of your clients previously relied on either service, filing must now go through commercial accounting software that supports direct submission.
New fee structure
From 1 February 2026, Companies House fees increased substantially. The key changes are:
- Digital filing fee: £50 (previously £13)
- Paper filing fee: £110 (previously £40)
- Digital incorporation: £100
- Annual confirmation statement: £50
These increases apply across the board, so it is worth flagging the cost change to clients who may not have noticed.
Identity verification
Since 18 November 2025, all new directors, PSCs, and LLP members must verify their identity with Companies House at the point of appointment. Existing directors and PSCs have a transition period and must complete verification by November 2026. This is a mandatory requirement, and appointments cannot proceed without it.
Register changes
From 18 November 2025, companies can no longer elect to hold officer information on the Companies House central register. If any of your clients had previously opted into central register arrangements, they will need to maintain their own statutory registers from now on.
What are the planned changes to accounts filing?
The ECCTA includes provisions for several major reforms to how company accounts are filed. However, as of January 2026, all of the following changes have been officially paused. No new implementation date has been set, and Companies House has confirmed that companies will receive at least 21 months' notice before any of these reforms take effect.
Software-only filing
Under the planned reforms, all companies would need to file their annual accounts using commercial software in iXBRL format. Paper filing and the free WebFiling tools would no longer be accepted. While the CATO and WebFiling services have already closed, the broader mandate requiring software-only filing for all company types is part of the paused reforms.
Mandatory profit and loss filing
Small companies and micro entities would be required to file full profit and loss accounts with Companies House. Currently, these companies can still choose to file filleted or abbreviated accounts that omit the profit and loss statement.
Abolition of abridged accounts
The reforms would remove the option to file abridged accounts entirely. This is intended to standardise the level of financial disclosure across all company sizes. For now, abridged accounts remain an accepted filing option.
Other planned changes
Additional measures in the paused package include enhanced audit exemption statements and restrictions on shortening accounting reference periods. Full details are available on the official changes to accounts page.
Why is Companies House making these changes?
The reforms stem from the ECCTA 2023, which gives Companies House expanded powers to verify, challenge, and remove information from the register. The overarching objective is to reduce economic crime and improve the quality and transparency of data held on the companies register.
Under the current system, smaller companies are not required to disclose their profit and loss accounts or directors' reports publicly. While this was originally intended to reduce the administrative burden on small businesses, limited disclosure creates opportunities for fraud. Companies can present a misleading picture of their financial position, which undermines confidence in the register.
Greater transparency protects creditors, consumers, and the wider public interest. When accurate financial data is publicly available, it supports better-informed decision-making by lenders, suppliers, and potential business partners. For practitioners, more consistent and detailed filings should also make it easier to assess a prospective client's financial position.
Who will these changes affect?
The changes already in effect (fee increases, identity verification, CATO closure) apply to all registered companies and LLPs. Every company filing accounts or making appointments at Companies House is subject to the new requirements.
When the paused reforms eventually resume, the most significant impact will fall on small companies and micro entities. These are the businesses that currently benefit from the option to file abridged or filleted accounts without a profit and loss statement. Once the reforms take effect, they will need to file full accounts, including profit and loss.
Many company types already file accounts through commercial software. However, some categories of company, including larger and more complex entities, currently rely on paper filing because software solutions do not yet support their filing requirements. Companies House has indicated that solutions will be developed for these company types before software-only filing becomes mandatory.
As an accountant or bookkeeper, these changes directly affect your practice workflows. You will need to ensure your accounts production and filing software can handle the new requirements, and proactively advise clients on what to expect.
What are the late filing penalties?
Late filing penalties are automatic and apply regardless of whether the delay is intentional. Companies House does not issue warnings before a penalty is imposed. The current penalty structure is as follows.
For private companies:
- Up to one month late: £150
- One to three months late: £375
- Three to six months late: £750
- More than six months late: £1,500
For public companies:
- Up to one month late: £750
- One to three months late: £1,500
- Three to six months late: £3,000
- More than six months late: £7,500
If a company files its accounts late in two successive financial years, the penalty automatically doubles. This makes timely filing a priority, particularly for clients with a history of late submissions.
How to prepare for the filing changes
Although the accounts-specific reforms are paused, the direction of travel is clear. Preparing now means you and your clients will be ready to comply when the changes are confirmed, without a last-minute scramble.
1. Review your current filing processes
Assess how your practice currently handles accounts production and filing. If you or your clients have been using CATO or WebFiling, you will need an alternative. Identify any clients still relying on paper filing and plan their transition to software-based submission.
2. Evaluate your accounts production software
Make sure your software supports iXBRL filing and can generate full accounts, including profit and loss statements. Xero Tax allows you to prepare and file annual accounts and tax returns directly to Companies House and HMRC, streamlining the process within a single platform.
3. Complete identity verification for all directors and PSCs
If any of your clients have existing directors or PSCs who have not yet verified their identity with Companies House, prioritise this ahead of the November 2026 deadline. New appointments already require verification at the point of filing.
4. Communicate changes to your clients
Many small business owners may not be aware of the fee increases or the upcoming identity verification deadline. A proactive client communication, whether through a newsletter, email update, or advisory meeting, positions your practice as a trusted source of guidance.
5. Stay informed
Companies House has committed to giving at least 21 months' notice before the paused reforms take effect. Monitor updates through the official changes to UK company law page and sign up for email alerts to stay ahead of any announcements.
Stay ahead of Companies House filing changes
Filing reforms are reshaping how practices handle accounts production and submission. Having the right tools in place means you can adapt with confidence as requirements evolve. The Xero partner programme gives you access to Xero Tax for accounts preparation and filing, along with practice management tools designed to help you work more efficiently.
FAQs on company accounts filing requirement changes
Here are some frequently asked questions about company accounts filing requirement changes at Companies House.
Has software-only filing been delayed?
Yes. The planned mandate for software-only filing was officially paused in January 2026. No new implementation date has been announced, and Companies House will provide at least 21 months' notice before the requirement takes effect.
Do small companies still need to file profit and loss accounts?
Not yet. The requirement for small companies and micro entities to file profit and loss accounts is part of the paused reforms. Current rules, including the option to file filleted or abridged accounts, remain in place until further notice.
What happened to the CATO filing service?
The CATO (Company Accounts and Tax Online) joint filing service closed permanently on 31 March 2026. Companies that previously used CATO must now file through commercial accounts production software.
How much are Companies House late filing penalties?
Penalties for private companies range from £150 (up to one month late) to £1,500 (more than six months late). Public company penalties range from £750 to £7,500. Penalties automatically double if accounts are filed late in two consecutive financial years.
When will the accounts filing reforms take effect?
There is no confirmed date. The reforms were paused in January 2026 and Companies House has said it will give companies at least 21 months' notice before they come into force.
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