Why small businesses must act now ahead of the 2027 software-only filing deadline

8th Jul 2025

Imagine this…

You are running a small but growing business. It is late March 2027, and you are finally sitting down to file your company accounts. You log in to Companies House, just like you have done for years. But this time, something is different.

The online filing option is gone.

Instead, you are told you must use commercial software, software you have not set up, do not understand, and have no time to learn. Your deadline is days away. You feel stuck, frustrated, and exposed.

This is not a distant possibility. It is a confirmed change in UK company law and it is coming fast.

What you need to know ahead of the 2027 software-only filing deadline

Many small business owners are unaware of the changes coming to company accounts filing and disclosure rules. From April 2027, Companies House will no longer accept paper or web-based filings for accounts. Filing will be software-only.

At the same time, small and micro-entities will face stricter reporting requirements, including:

No more abridged accounts
Mandatory profit and loss accounts
Enhanced director statements
New disclosure rules under FRS 102 Section 1A (from January 2026)

These changes are part of the Economic Crime and Corporate Transparency Act, designed to improve transparency, reduce fraud, and modernise the UK’s corporate reporting system.

But for many businesses, the shift feels sudden and overwhelming.

You are not alone in feeling unsure about what this means or how to prepare. Many of our clients are asking:

“What software do I need to use?”
“Will I have to disclose more financial information publicly?”
“What if I am a dormant company or a micro-entity?”
“How do I stay compliant without overcomplicating things?”

What action to take ahead of the 2027 software-only filing deadline

Step 1: Prepare for software-only filing (by April 2027)

From 1 April 2027, all companies, including micro-entities and dormant companies, must file accounts using commercial software. Paper and web-based filing will no longer be accepted.

What you need to do now:

Choose a compatible software provider (e.g. Xero or QuickBooks)
Ensure it supports both Companies House and HMRC filings
Begin using it early to avoid last-minute issues

Not sure which software is right for your business? Our team can help you compare options based on your size, sector, and filing needs.

Step 2: Understand the new disclosure rules (from January 2026)

The Financial Reporting Council (FRC) has updated FRS 102 Section 1A for small entities. From 1 January 2026, you must include:

A clear statement of compliance with FRS 102
Going concern disclosures (i.e. can your business continue trading?)
Clarification that legal disclosures must be made even if not material
Public benefit entities must declare their status

These changes apply to accounting periods starting on or after 1 January 2026. Early adoption is allowed.

Step 3: Know what you must file (from April 2027)

For Micro-Entities you must file a balance sheet and profit and loss account
For small companies you must file a balance sheet, profit and loss account and directors' report
Companies are no longer allowed to file abridged accounts

It is also important to note:

Audit exemption claims must include a specific director statement
You can only shorten your accounting reference period once every 5 years, unless there is a valid reason