Latest news with #MegOgunsola
Yahoo
08-07-2025
- Business
- Yahoo
UK reversal of Companies House reforms may affect SMEs
The UK government is considering a reversal of the planned Companies House reforms that would have required small businesses (SMEs) to file accounts using compliant software by 1 April 2027. This sudden policy shift is likely to impact SMEs' accounting practices. This shift has been acknowledged by Meg Ogunsola, global director of Entity Management Solutions at Vistra, as a significant reminder of the difficulties in implementing new regulations that are both practical and protective for businesses. Ogunsola emphasises the importance of smaller firms working with knowledgeable partners to manage the uncertainty of evolving regulations and maintain compliance without undue hardship. Despite the potential reversal, she supports the measures under the Economic Crime and Corporate Transparency Act (ECCTA). She also cautions businesses to prepare for the mandatory ID verification for directors, PSCs, and LLP members, which is expected to be enforced this autumn. Meg Ogunsola said: "The Government's potential U-turn on Companies House reforms for filing rules highlights the complexity of drafting and introducing regulations, and the tricky balancing act of protecting and overburdening firms. These complexities demonstrate the need for companies, particularly smaller ones, to partner with suppliers that can help them navigate regulatory uncertainty, reduce operational strain, and support compliance.' She added: "Despite this change, the ECCTA remains critical in the UK's fight against fraud, and with mandatory ID verification coming into force this autumn, businesses must act now to ensure they are prepared." "UK reversal of Companies House reforms may affect SMEs" was originally created and published by International Accounting Bulletin, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Yahoo
02-07-2025
- Business
- Yahoo
Companies House to mandate filing by software
UK's Companies House has announced that, effective from 1 April 2027, all companies and Limited Liability Partnerships (LLPs) will be required to file their accounts using commercial software. The move, part of the Economic Crime and Corporate Transparency Act (ECCTA) 2023, mandates that accounts be tagged using iXBRL (Inline eXtensible Business Reporting Language). From the same date, Companies House will streamline account filing options for small and micro-entity companies. Directors and LLP members are also urged to review their data and verify their identity before an upcoming autumn deadline. The move was welcomed by Meg Ogunsola, the global director of entity management solutions at Vistra, a business advisory company. Ogunsola said: 'Today marks a milestone in Companies House reforms and the UK's fight against fraud. The confirmation of an Autumn deadline for directors, PSCs and LLPs to verify their identity signals a radical change in the governance of corporate transparency and accountability. Yet official figures show that just 2.86% of those expected to complete ID verification have done so. 'Further confirmation that companies will be required to file accounts using commercial software from April 2027 onwards, combined with the 'failure to prevent fraud' offence coming into force in just two months, highlights the urgency for compliance, and risk of severe financial, operational and reputational consequences. Companies House has stepped up, and it is time for firms to do the same and act now.' After 1 April 2027, the executive agency, which is backed by the Department for Business and Trade, will close its web filing service and paper filing route for accounts, although these will remain open for other statutory filings. The filing requirements apply to all UK registered companies, LLPs, eligible overseas entities with UK operations, charities registered as companies, and Community Interest Companies. Companies House has prepared a stakeholders guide to assist companies and their advisers with the transition to software-only accounts filing. The introduction of this requirement means companies and LLPs must ensure their accounts are correctly structured and tagged using iXBRL, a global standard combining HTML with XBRL tags for machine and human readability. Companies House stressed on the importance of sourcing appropriate software and recommends understanding the software's tagging features on test accounts before the mandatory deadline. A software look-up tool is available to help companies compare and select suitable software products. For small and micro-entities, the following streamlined filing options will be available from 1 April 2027: micro-entities must file their balance sheet and profit and loss account, while small companies must file their balance sheet, directors' report, auditor's report (unless exempt), and profit and loss account. Abridged accounts will no longer be permissible. Companies claiming an audit exemption must provide an additional statement from directors on the balance sheet, specifying the exemption claimed and confirming qualification. Companies House will also limit the frequency of shortening accounting reference periods, requiring a business reason for more than one change within five years. "Companies House to mandate filing by software " was originally created and published by The Accountant, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
