20/12/2023 Gatenox

Changes to Accounts Filing Under The Economic Crime and Corporate Transparency Act

Embracing Digital Transformation: Changes to Accounts Filing Under The Economic Crime and Corporate Transparency Act

The Economic Crime and Corporate Transparency Act heralds a new era in financial transparency and efficiency for UK companies. This third article in our series delves into the significant changes to accounts filing introduced by this legislation.

1. Transition to Software-Only Filing

A major shift is the transition towards exclusively using software for filing annual accounts with Companies House. This digital move aims to enhance efficiency, security, and data quality on the register. It encompasses a single, sustainable, and traceable filing method, applicable to both directors filing independently and companies utilizing third-party agents or accountants. The transition will be gradual over 2 to 3 years, with timelines varying based on account types​​.

2. Streamlining Small Company Filing Options

Small and micro-entity companies will experience changes in filing options. They are now required to file profit and loss accounts with specific details outlined in secondary legislation. Additionally, small companies that do not qualify as micro entities must also submit a directors’ report. The option to file ‘abridged’ accounts is being removed, simplifying the filing process and enhancing transparency​​.

3. Audit Exemption Statements

For companies claiming an audit exemption, there’s a new requirement to provide an additional statement from directors on the balance sheet. This statement must specify the claimed exemption and confirm the company’s eligibility for it​​.

The Economic Crime and Corporate Transparency Act’s reforms in accounts filing mark a significant step towards a more digital, transparent, and efficient corporate environment in the UK. Gatenox is committed to supporting businesses through this transformation, providing innovative solutions that align with the latest regulatory standards.