Changes to accounts filing, Gov.UK uses an AI chatbot, and debt advice for small businesses
Today’s blog post covers the changes to accounts filing proposed by Companies House, how Gov.UK are utilising AI chatbots to support with tax queries, and there’s a new debt advice service for small businesses.
Companies House to bring in changes to accounts filing from April 2028
Companies House will introduce changes to accounts filing due to governmental reforms under the Economic Crime and Corporate Transparency Act 2023 (ECCT Act 2023).
The changes will now come into effect from April 2028, rather than April 2027, to give companies more time to prepare.
The reforms include requiring small companies and micro entities to file profit and loss accounts with Companies House as other companies do. They will have the option to opt out of publishing this information on the public register.
As with Making Tax Digital, companies will be required to file annual accounts via commercial software.
The new rules will introduce additional limitations, including removing the option for companies to file abridged accounts and reducing the number of times a company can shorten its accounting reference period. There will also be a strengthened eligibility statement for all companies claiming an audit exemption and a requirement that the component parts of the accounts and reports be filed together.
Companies House will contact all companies via their registered email address to tell them about these changes and signpost available guidance.
Although transparency and data clarity were prime factors in the planned changes, allowing small companies and micro-entities to opt out of publishing their filed profit and loss accounts protects their privacy and mitigates commercial risks.
Software-only accounts filing
From April 2028, Companies House will require all UK-registered companies to file their accounts in Inline eXtensible Business Reporting Language (iXBRL) format by using commercial software. This applies to companies that file their own accounts and those using third-party agents or accountants to file their annual accounts. Web and paper-based filing systems will be closed for account filings.
The full details of changes will be confirmed in due course but are likely to increase the operating costs of small businesses.
To select a software provider, Companies House recommends using the interactive list of software providers on GOV.UK. https://www.gov.uk/software-company-accounts
AI chatbot for government queries
The government has made a new Artificial Intelligence (AI) tool available on the GOV.UK app called GOV.UK Chat. It draws on official government guidance, including tax, to answer questions.
According to the government press release, GOV.UK Chat is an Artificial Intelligence (AI) chatbot designed for people to ask questions in plain language and receive instant, clear and ‘reliable’ answers drawn from official government information. The aim is to reduce demand for helpline services and speed up searches for information on the GOV.UK website.
Users of the AI chatbot will be able to get answers on a range of subjects, including tax. It is important to note GOV.UK Chat has limitations. While it uses HMRC guidance on the GOV.UK website to source answers to tax questions, it does not source information from HMRC’s manuals.
This makes it unlikely to be useful beyond answering basic tax questions.
Businesses should also be aware that GOV.UK Chat is only available on the GOV.UK app. This means any use by your staff that is related to your business will likely be on their personal devices using personal logins, which could raise privacy and data security concerns.
Additionally, as with any AI tool, the answers given may not be accurate or complete and ‘hallucinations’ can cause AI tools to present incorrect responses as fact.
Small businesses get helping hand with strengthened debt advice
A new £4 million funding boost has been given to business debt advice services to help small businesses and the self-employed. The funding will go towards expanding access to expert support to help them get back on track, giving a leg up to an additional 16,000 businesses over the next three years.
This is building on the existing Business Debtline service run by the Money and Pensions Service.
The new funding will support the government’s Plan for Small Business that helps small businesses access the tools and support they need. This modernisation fund will allow them to spend more time helping their clients, particularly in complex cases that may need additional support.