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Companies House Changes to Accounts Filing

27 - 06 - 2025

From 01 April 2027 companies will need to use commercial software to file accounts at Companies House.

Companies House is currently sending information to companies advising that from April 2027 all companies will need to file their annual accounts using commercial software. The options to file on paper or via Companies House’s web-based system will be closed.

 

Companies House have confirmed that from 01 April 2027:

 

·         Accounts must be filed digitally using software

·         Profit and loss accounts will be required for small and micro-entity companies

·         Other changes are planned, including updates to accounting reference periods and audit exemptions

 

These changes are part of the broader reform of Companies House’s role and services, aimed to improve the quality of information available at Companies House and to tackle fraud and economic crime. The intention is also to make the filing process more streamlined and secure for companies.

 

Companies already filing through commercial software will not need to change their filing process. Businesses who currently submit their own accounts using the Companies House web-based service will need to source software or seek support from an accountant to file their accounts.

 

Companies House advise that they are contacting all companies now to give them time to prepare for the changes.  

 

Foremans clients do not need to take any action. Foremans will continue to file company accounts through appropriate and compliant software and monitor any changes. If you are not currently a Foremans client but we can help or advise you on these changes please do not hesitate to contact our friendly team on 01244 625 500 or contactus@foremansllp.com.

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Fixed Data

Assumptions

General                                                                                                                              

• The user is over 21 and subject to tax in the UK
• The user wishes to minimise their tax liability
• The user is subject to national insurance i.e.he/she is not over retirement age
• Only current tax rates and limits are applied
• No tax mitigation payments are made e.g. pension contributions
• Only 3 digit letter 'L' tax codes shown in the drop down list can be entered 
• The user does not have a turnover greater than £100,000 where fewer reliefs and or higher taxes may apply

Expenses

• All miles claimed as expenses are for business use using a personally owned car or van
• All other expenses claimed are wholly, necessarily and where appropriate exclusively for the benefit of the business

Foremans LLP Charges

• Foremans fees associated with Limited Company, Sole Trader or Umbrella are as per published rates
• Foremans current Service Costs are allowed for in all calculations.

Holiday Pay

• Holiday pay is accumulated week by week by Umbrella or Agency employer but paid out during the year

VAT

• Limited Company or Sole Trader will be VAT registered
• Limited Company or Sole Trader will take advantage of Flat rate VAT
• Flat rate applied includes the benefit of the additional 1% applicable to the first year of VAT registration

Limited Company Conditions

• One director / one shareholder in a Personal Service Company
• Director of Personal Service Company elects to vote for 100% dividend after salary, costs and expenses
• Director's salary is maximum salary to the primary threshold for NI
• The Limited Company is trading normally i.e it is not subject to IR35 and is not a Managed Service Company

NOTES

• The Current tax rates are taken from the Fixed Data Table
• The current Value Added Tax Rate is 20% and is applied to all invoices and expenses as appropriate
• The Director's Salary is fixed in relation to National Insurance thresholds. Higher Rate Taxpayers should consider the advantages and disadvantages of a larger annual salary or bonus
• Higher Rate Taxpayers may wish to consider the advantages and disadvantages of shared ownership of their business
• Users with a tax code other than three digits and letter "L" may telephone or email our Development Department to request a detailed calculation
• Generally the use of an Umbrella rather than an Agency payroll is only efficient if sufficient weekly expenses are allowable and claimed
• The expenses claimed under an Umbrella should not prevent the proper operation of National Minimum Wage