Verify Your Identity: The 2026 Priority
If there is one thing you do today, ensure your identity is verified. One of the most significant changes under the Economic Crime and Corporate Transparency Act is the mandatory identity verification for all new and existing directors and Persons with Significant Control (PSCs).
By 2026, Companies House has fully integrated this system. If you fail to verify your identity, your filings could be rejected, and you may even face a fine or be barred from acting as a director.
Register your verification early to avoid bottlenecks. You can complete this through the Companies House portal or via an authorised intermediary. Taking five minutes to do this now prevents a massive headache when your annual accounts are due.
Secure an “Appropriate” Registered Office
Is your registered office still a PO Box? If so, you need to change it immediately. In 2026, Companies House no longer accepts PO Boxes as valid registered office addresses. Your address must be a physical location where someone can acknowledge receipt of documents.
If your address is deemed “inappropriate,” the Registrar has the power to strike your company off the register or change your status to “non-compliant.” For many small business owners, using a professional registered office service is the best way to maintain privacy while staying fully compliant.
Master the 2026 Tax Rates and Thresholds
Understanding your tax obligations is essential for proper accounting. For the 2026 financial year, the Corporation Tax and VAT landscapes have stayed relatively steady, but the thresholds remain critical for your cash flow planning.
Corporation Tax: The Three-Tier System
Your tax rate depends entirely on your profits. For the 2026 financial year:
- Small Profits Rate (19%): If your profits are £50,000 or less, you will pay 19%.
- Main Rate (25%): If your profits exceed £250,000, you will pay 25%.
- Marginal Relief: If your profits fall between £50,001 and £250,000, your tax rate will gradually increase from 19% to 25%.
VAT Thresholds
For the 2026–27 tax year, the VAT registration threshold remains at £90,000. If your taxable turnover over any rolling 12-month period hits this figure, you must register within 30 days. Conversely, if you want to deregister, your turnover must be expected to fall below £88,000.
Staying on top of these numbers is essential. Missing a VAT registration deadline is an easy way to incur heavy penalties from HMRC.
Prepare for the “Digital-Only” Filing Shift
The days of paper filings and joint submissions are officially over. As of April 1, 2026, HMRC has closed the joint filing service that allowed companies to submit accounts to Companies House and HMRC simultaneously.
What does this mean for you?
- Separate Filings: You now have to file your CT600 (Corporation Tax Return) with HMRC and your annual accounts with Companies House separately.
- Mandatory Software: You must use HMRC-recognised software to submit these returns. Manual online entry is being phased out in favour of API-driven software submissions.
- Detailed Disclosure: Small companies are now required to provide more detail in their accounts, including a Profit and Loss account, which was previously often “filleted” or omitted from the public record.
This change highlights the importance of having a robust digital bookkeeping system to handle these digital filings, ensuring that the data sent to both authorities is consistent and accurate.
Budget for Increased Filing Fees
Compliance is getting more expensive. From early 2026, the standard digital filing fee for a Confirmation Statement (CS01) has increased to approximately £50, up from the historical £13. Incorporations and other filings have seen similar hikes.
While these fees are a small part of your overall budget, they are mandatory. Ensure your accounting software or your accountant has budgeted for these increased costs so there are no surprises in your year-end reporting.
Your 2026 Compliance Checklist: The “Do This Now” List
To keep your business running smoothly, follow this structured checklist:
- [ ] Verify ID: Ensure all directors and PSCs have completed the Companies House identity verification process.
- [ ] Check Registered Office: Confirm your registered office is not a PO Box and is an “appropriate” physical address.
- [ ] Update Software: Ensure your bookkeeping software is compatible with HMRC’s 2026 digital filing requirements.
- [ ] Monitor Turnover: Keep a rolling 12-month log of your turnover to ensure you don’t miss the £90,000 VAT threshold.
- [ ] Set Deadlines: Mark your calendar for your Corporation Tax payment (9 months and 1 day after year-end) and your filing deadline (12 months after year-end).
- [ ] Review PSC Register: Companies House is moving to a centralized register. Ensure your information is up to date on their platform, not just in your internal files.
Why Compliance Is Your Growth Engine
It’s easy to view compliance as a burden, but in 2026, it is actually a competitive advantage. Clean accounts and an up-to-date filing record make your business “investment-ready” and simplify the process of applying for business loans or opening new banking facilities.
Outsourcing your compliance to a dedicated accounting service means you get:
- Daily Bookkeeping: Real-time visibility into your finances.
- VAT Management: Expert handling of registrations and quarterly filings.
- Year-End Accuracy: Professionally prepared accounts that meet the new 2026 disclosure standards.
- Peace of Mind: Knowing that every deadline is met and every new rule is followed.
Frequently Asked Questions
Can I still file “filleted” accounts in 2026?
The options for small and micro-entities to “fillet” or abridge their accounts have been significantly reduced. Most companies are now required to file a Profit and Loss account and a directors’ report, providing more transparency to the public record.
