The Latest changes to the The Economic Crime and Corporate Transparency Act

The Economic Crime and Corporate Transparency Act introduces measures designed to increase openness by expanding the financial information accessible to the public.

From 1 April 2027, companies will be required to submit accounts using commercial software, including those that are dormant.

Additional changes will also take effect from this date. The filing requirements for small companies and micro-entities will be updated. Micro-entities will no longer be permitted to file only a balance sheet; a profit and loss account will also be required.

Small companies will be required to file a copy of their balance sheet, directors’ report, auditor’s report (unless exempt) and Profit and loss account.

Companies will no longer be able to prepare and file ‘abridged’ accounts

Companies claiming an audit exemption will need to give an enhanced statement from their directors on the balance sheet.

Directors will need to specify which exemption is being claimed and confirm that the company qualifies for that exemption.

Limits are being introduced on how many times a company can shorten its accounting reference period.  Currently, you can shorten your company’s accounting reference period as many times are you like.  A company will have to provide a business reason if they want to shorten the period more than once within 5 years.