{"id":11214,"date":"2023-12-22T17:19:05","date_gmt":"2023-12-22T17:19:05","guid":{"rendered":"https:\/\/www.qualitycompanyformations.co.uk\/blog\/?p=11214"},"modified":"2024-03-05T09:48:38","modified_gmt":"2024-03-05T09:48:38","slug":"small-companies-annual-accounts-filing-changes","status":"publish","type":"post","link":"https:\/\/www.qualitycompanyformations.co.uk\/blog\/small-companies-annual-accounts-filing-changes\/","title":{"rendered":"The way small companies file annual accounts is changing"},"content":{"rendered":"

New changes are being implemented in 2025 which means the way small companies (including micro-entities) file their annual accounts with Companies House will be changing. <\/span><\/p>\n

In this article, we look at the new filing requirements and impact they will have on small businesses. Let\u2019s get started.<\/span><\/p>\n

What changes are being made?<\/h3>\n

Two main changes are being introduced:<\/span><\/b><\/p>\n

1. Paper filing of annual accounts is being stopped<\/h4>\n

You will no longer be able to file annual accounts via paper with Companies House. You will also not be able to use Companies House WebFiling or CATO (Company Accounts and Tax Online), the Companies House and HMRC joint filing service.\u00a0<\/span><\/p>\n

Instead, annual accounts must be delivered through pre-approved software. <\/span>See here for a list of software that Companies House has tested<\/span><\/a>.<\/span><\/p>\n

For companies that must use the paper filing method because their accounts are complex, Companies House is upgrading its upload facility so that it can handle zip files (this is expected to go live in 2024).<\/span><\/b><\/p>\n

2. Small companies and micro-entities must provide profit and loss information<\/h4>\n

Small companies will need to include profit and loss accounts (something not previously required) as part of their annual accounts, plus a director\u2019s report.\u00a0<\/span><\/p>\n

Micro-entity companies will also need to include profit and loss accounts (again, something not previously required) as part of their annual accounts; however, a director\u2019s report will not be necessary (but is optional).<\/span><\/p>\n

\n \n \"Revolut\n \"Revolut\n <\/a>\n <\/div>\n \n

The option for companies to file abridged accounts will be removed. Whilst dormant company accounts will still be permitted for companies that have not taken part in any trading activity, these must be accompanied by a statement that confirms the company qualifies for an audit exemption.<\/span><\/p>\n

What is a small company?<\/h3>\n

When it comes to filing annual accounts, a company is classified as a small company if it meets two of the below criteria:<\/span><\/p>\n