UK Tax & Companies House Update: 4 Key Changes – August 2026
Published: 9 August 2026
Companies House has revised the timetable for major filing reforms, while two new Upper Tribunal decisions contain important lessons concerning directors’ loan accounts, HMRC information notices and reliance on professional advisers.
Companies House has also updated its lists of active, suspended and ceased Authorised Corporate Service Providers.
Here are four important developments that company directors, business owners and accountancy practices should know about.
1. Companies House delays major filing reforms
On 5 August 2026, Companies House updated its implementation timetable for the Economic Crime and Corporate Transparency Act 2023.
The two key dates are:
- April 2028: Companies House expects to introduce its accounts-filing reforms.
- No earlier than November 2027: New restrictions governing who may present or file information at Companies House are expected to begin.
Companies House has confirmed that it will provide at least six months’ notice before the presenter requirements take effect.
The accounts reforms expected from April 2028 include:
- requiring all annual accounts to be filed using commercial software;
- requiring small companies and micro-entities to file profit and loss accounts, with an option to prevent this information from being published on the public register;
- removing the option to file abridged accounts;
- strengthening the eligibility statement for companies claiming an audit exemption;
- requiring all components of the accounts and reports to be filed together; and
- restricting how often a company may shorten its accounting reference period.
The presenter reforms are expected to require anyone filing documents to complete identity verification and third-party agents filing for clients to be registered as an Authorised Corporate Service Provider.
The full timetable is available in the Companies House ECCTA transition plan.
What should businesses and accountants do?
The reforms have been delayed, not cancelled.
Companies and accountancy practices should continue to:
- maintain accurate digital company records;
- complete outstanding identity verification for directors and people with significant control;
- monitor confirmation-statement deadlines;
- review company-secretarial software;
- maintain appropriate filing controls; and
- ensure that existing ACSP registrations and procedures remain compliant.
Mandatory identity verification for new directors and PSCs began on 18 November 2025, with a transition period applying to existing companies. Firms already registered as ACSPs also have ongoing compliance responsibilities.
2. Director’s loan write-off can trigger a personal tax charge
The Upper Tribunal released its decision in HMRC v Quillan [2026] UKUT 00300 (TCC) on 6 August 2026.
The case concerned an overdrawn director’s loan account of £439,954. The director paid £57,498 under a settlement arrangement, leaving £382,456 outstanding.
The liquidator subsequently reported that no further money was expected, although the debt had not been formally released or described as formally written off.
The Upper Tribunal allowed HMRC’s appeal. It concluded that a write-off had occurred for the purposes of section 415 of the Income Tax (Trading and Other Income) Act 2005 and that it took place during the 2018/19 tax year.
The official Quillan decision confirms the outcome.
Why is this important?
Where a close company writes off a loan to a director or shareholder who is a participator, a personal income-tax charge may arise.
One of the most important points from the decision is that a “write-off” is different from a legal release of the debt. A written-off debt can potentially remain legally recoverable if circumstances change.
Therefore:
- simply leaving a loan unpaid does not automatically determine the tax treatment;
- the absence of a formal debt-release document may not prevent a tax write-off from occurring;
- a liquidator’s reports and decision to stop pursuing a debt can be important;
- the relevant tax year must be established carefully; and
- the personal section 415 charge must be considered separately from the company’s section 455 position.
Board minutes, settlement agreements, company accounts, correspondence, insolvency reports and evidence of attempts to recover the debt should all be retained and reviewed.
Directors should obtain professional advice before waiving, settling or restructuring an overdrawn director’s loan—particularly where a company is being sold, closed or placed into liquidation.
3. Relying on an adviser does not automatically provide a reasonable excuse
The Upper Tribunal issued another important decision on 7 August 2026: David Hill and David McCracken v HMRC [2026] UKUT 00306 (TCC).
The case concerned HMRC information notices, penalties and the taxpayers’ reliance on professional advisers.
The taxpayers argued that they had a reasonable excuse for not complying with the information notices because they had relied on advice that no action was required.
However, the Tribunal upheld the finding that their reliance did not amount to a reasonable excuse. Among other factors, they had not adequately questioned the advice despite receiving repeated penalties and correspondence showing that HMRC did not accept their adviser’s position.
The appeal was allowed in part on a separate technical issue concerning the calculation or amount of the penalties. The reasonable-excuse grounds were dismissed.
The judgment can be read in the official Hill and McCracken decision.
Practical lessons for taxpayers
Appointing an accountant or tax adviser does not transfer every statutory responsibility away from the taxpayer.
When HMRC issues an information notice, the taxpayer should:
- record the response deadline;
- provide the requested documents promptly;
- understand what their adviser proposes to submit;
- ask questions where HMRC continues to challenge the position;
- retain copies of information supplied to the adviser; and
- confirm that the response was submitted on time.
A taxpayer is not normally expected to understand every technical tax argument or second-guess a competent adviser. However, the taxpayer must still take reasonable care when relying on another person.
Practical lessons for accountancy firms
Accountancy practices should clearly document:
- the scope of their engagement;
- who is responsible for obtaining each document;
- who will submit the response;
- the applicable deadline;
- any missing information;
- technical advice provided to the client; and
- warnings about the consequences of non-compliance.
Written responsibility schedules can be particularly valuable during enquiries and investigations.
4. Companies House is actively monitoring ACSP status
On 7 August 2026, Companies House updated both its published list of active ACSPs and its list of ceased or suspended ACSPs.
Companies House may suspend an ACSP while investigating, or requesting more information about:
- the firm’s business or anti-money-laundering supervision;
- filings made at Companies House; or
- its identity-verification procedures.
Companies House may cease an ACSP’s status if the agent asks to be removed or fails to comply with legal requirements.
An agent appearing on the ceased or suspended list cannot act as an ACSP.
The published active list is not necessarily complete because it only includes agents that have asked for their details to be published. Companies House also warns that recent suspensions or cessations can take up to two weeks to appear.
What should accountancy practices review?
Firms registered as ACSPs should check that:
- their AML supervision remains valid;
- Companies House holds accurate firm details;
- identity checks meet the required standard;
- evidence supporting each identity verification is retained;
- filings are reviewed and appropriately authorised;
- staff access and filing credentials are controlled; and
- any Companies House request for information is answered promptly.
ACSP registration should be treated as an ongoing regulatory responsibility, rather than a one-off application.
Consultation deadlines for businesses and advisers
Several important tax consultations remain open.
Online-marketplace VAT liability – closes 18 August 2026
HMRC and HM Treasury are consulting on extending online-marketplace VAT liability to certain sales made by UK businesses.
The proposals could affect retailers, restaurants, takeaway kitchens and other businesses selling goods or food through online platforms. The government is considering safeguards intended to reduce the impact on businesses that are not required to register for VAT.
These are proposals and have not yet become law. Responses can be submitted through the online-marketplace VAT consultation, which closes on 18 August 2026.
Finance Bill 2026–27 draft legislation – closes 7 September 2026
Draft legislation and technical documents have been published covering personal tax, corporate tax, indirect taxes, anti-avoidance, customs and tax administration.
The Finance Bill 2026–27 technical consultation closes on 7 September 2026.
Predevelopment costs – closes 21 September 2026
Following the Supreme Court’s decision in Ørsted West of Duddon Sands (UK) Ltd and others v HMRC, HM Treasury is seeking evidence about uncertainty surrounding the tax treatment of predevelopment expenditure.
The consultation is particularly relevant to businesses undertaking substantial investment projects involving plant and machinery.
Comments on the tax treatment of predevelopment costs must be submitted by 21 September 2026.
How SKN Chartered Accountants can help
Companies House reform, overdrawn directors’ loan accounts and HMRC information notices can create significant tax and compliance risks if they are not addressed correctly.
SKN Chartered Accountants can assist with:
- Companies House compliance and confirmation statements;
- director and PSC identity-verification requirements;
- ACSP and company-secretarial procedures;
- directors’ loan account reviews;
- section 455 and personal tax implications;
- HMRC information notices, enquiries and penalties; and
- company closures and restructuring.
Contact SKN Chartered Accountants for advice tailored to your company or individual circumstances.
Frequently asked questions
Have the Companies House accounts reforms been cancelled?
No. Companies House currently expects the accounts reforms to start in April 2028. The implementation date has been moved back, but the reforms remain part of the programme.
Is an unpaid director’s loan automatically written off?
Not necessarily. The tax position depends on the evidence and substance of what has happened. A formal legal release may not be required before a write-off arises for tax purposes.
Can reliance on an accountant provide a reasonable excuse?
It can be relevant, but it does not automatically provide a reasonable excuse. The taxpayer must normally show that they took reasonable care when selecting, instructing and relying on the adviser.
Can Companies House suspend an ACSP?
Yes. Companies House can suspend an ACSP while investigating its AML supervision, filings or identity-verification procedures. A suspended ACSP cannot continue acting in that capacity.
This article provides general information only and is correct based on official material available on 9 August 2026. Tax, legal and company-law consequences depend on the particular circumstances. Professional advice should be obtained before taking or refraining from action.