Changes to account filing rules could help worsen the industry’s skills crisis, according to industry bodies.
Companies House emailed businesses last week to warn them that all accounts filings made from April 2027 must be filed using commercial software, with web and paper options no longer available.
The body said this would allow “more efficient and secure filings for companies”.
From the same date, small and micro companies will be required to publish their balance sheet and profit and loss figures in their accounts. The filings are made public on the Companies House website.
At the moment, companies with turnover of less than £15m are able to publish accounts without those details. The threshold was raised earlier this year from £10.2m.
Rico Wojtulewicz, head of policy and market insight at the National Federation of Builders, told Construction News: “For commercial reasons, there are concerns around the publishing of profit and loss, not just because of competitors but the potential for companies to be automatically ruled out of supply chain partnerships and opportunities.”
He added: “There is another less discussed worry that older workers, who are often less tech savvy and need support to digitise, may feel pushed to retire and avoid a new bureaucratic hoop.
“With 22 per cent of workers aged over 50 and an estimated 100,000 aged 65 and older, tax digitisation could see a considerable drop in skilled workers right at a time the government and industry cannot afford to lose any labour capacity.”
Federation of Small Businesses chair Martin McTague told The Times that small firms are concerned they will have to shoulder the cost and upheaval of using reporting software.
Reporting profit and loss figures would enable “prospective big business clients in supply chains to check on their private finances”, he added.
The changes have come about as part of a move to prevent economic crime and follows the passing of the Economic Crime and Corporate Transparency Act 2023, as well as a consultation on the measures which ran in 2019.
According to Companies House, reporting via commercial software will “allow more efficient and secure filings for companies, and will be a critical step towards improving the quality of the data on the register”.
It added: “Software-only accounts filing will create a single, cost-effective, sustainable and traceable way to file.””
The body said “most companies can make the change now” as the commercial software is already available.
Web and paper routes will still be available for statutory filings other than of accounts.
“We are streamlining accounts filing obligations to improve the quality, transparency, and reliability of accounts data, and help disrupt economic crime,” Companies House told Construction News.
“These reforms will come into effect in 21 months (1 April 2027), giving all companies one full accounting year, plus nine months, to prepare.”
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Ian Weinfass