More UK accounting practices are choosing to outsource year-end accounts UK-wide in 2026, and two changes explain why. From 1 January 2026, FRS 102 mandatory amendments kicked in for accounting periods starting on or after that date. Then, on 31 March 2026, HMRC closed the free joint filing service that practices had relied on for straightforward company submissions. Neither change is catastrophic on its own. Together, during a busy year-end period, they are adding preparation time that most practices had not budgeted for. This post covers what the changes actually require, the filing rules that still catch firms out, and why outsourcing is looking like an increasingly sensible call.
What changed in 2026 for year-end accounts
FRS 102 periodic review: effective 1 January 2026
The Financial Reporting Council completed its Periodic Review 2024 in March 2024, setting a mandatory effective date of 1 January 2026 for accounting periods beginning on or after that date (FRC, September 2024). Early adoption was available, but most clients will be hitting the revised standard for the first time on accounts landing now.
Two changes matter most in practice.
Lease accounting. Lessees must now put a right-of-use asset and a corresponding lease liability on the balance sheet for most leases. The old operating versus finance lease distinction is gone for lessees. Short-term leases of twelve months or less, and leases of low-value assets, can still stay off-balance sheet (ACCA, May 2025). For a client with an office lease and a fleet of company vehicles, this means new calculations, new disclosures, and a balance sheet that looks meaningfully different.
Revenue recognition. Section 23 of FRS 102 now uses a five-step model based on IFRS 15: identify the contract, identify performance obligations, determine the transaction price, allocate it across the obligations, and recognise revenue when each obligation is satisfied. For clients with construction contracts, subscription arrangements, or bundled service deals, both the timing of revenue and the disclosure requirements can shift under the new rules.
Micro-entities on FRS 105 are unaffected by the lease changes. Any client using full FRS 102 or the Section 1A small entity regime, though, needs accounts prepared under the revised standard from their next relevant period start.
HMRC’s joint filing service has closed
On 31 March 2026, HMRC closed the ‘File your accounts and Company Tax Return’ online service (GOV.UK, updated 1 April 2026). From 1 April 2026, commercial software is the only route for filing CT600 returns and accompanying accounts with HMRC. Paper returns are still technically available, but only where there is a reasonable excuse or the filing is in Welsh. Any practice that was still using the HMRC portal for smaller, simpler companies now needs a software solution in place.
Filing deadlines and penalties UK practices should know
Year-end accounts sit across two separate filing regimes with different deadlines and different penalties, which is one more reason many practices outsource year-end accounts UK-wide rather than track both in-house.
| Obligation | Deadline | Enforcement |
|---|---|---|
| Annual accounts to Companies House | 9 months after financial year end | Companies House |
| Company Tax Return (CT600) to HMRC | 12 months after accounting period end | HMRC |
| Corporation Tax payment | 9 months and 1 day after accounting period end | HMRC |
Companies House applies automatic civil penalties the moment accounts arrive late. The amounts scale with the delay (GOV.UK, updated 9 June 2026):
| Time late | Private company | Public company |
|---|---|---|
| Up to 1 month | £150 | £750 |
| 1 to 3 months | £375 | £1,500 |
| 3 to 6 months | £750 | £3,000 |
| More than 6 months | £1,500 | £7,500 |
There is no discretion and no appeal on the grounds of being busy. File late in two consecutive years and the penalties double automatically.
Revised company size thresholds from 6 April 2025
The FRC published amendments to FRS 102 on 21 March 2025 to bring the standard in line with updated statutory size thresholds. For accounting periods beginning on or after 6 April 2025, a company is small if it meets at least two of:
- Annual turnover not more than £15 million
- Balance sheet total not more than £7.5 million
- Average employees not more than 50
Micro-entity thresholds: turnover not more than £1 million, balance sheet not more than £500,000, average employees not more than 10. Medium company thresholds: turnover not more than £54 million, balance sheet not more than £27 million, average employees not more than 250.
These changes will shift the reporting category for some clients. A company that previously sat just outside the small company regime may now qualify, reducing its disclosure burden and potentially allowing a move to FRS 102 Section 1A or even FRS 105. Worth checking across your client list before the next set of accounts goes out.
Outsource Year-End Accounts UK: Why Practices Are Making the Switch
For many firms, the decision to outsource year-end accounts UK-wide comes down to capacity as much as compliance. The maths is not complicated. FRS 102 changes mean more technically demanding accounts. HMRC’s portal closure means every submission now needs software. The year-end diary was already full. And from 1 April 2028, all Companies House filings must be in iXBRL format via commercial software, so paper filing and WebFiling disappear entirely. Practices that have not already moved to software-led year-end workflows have roughly two years to get there.
Against that backdrop, outsourcing year-end accounts preparation to Probal Global gives UK firms two things: the technical resource to handle revised FRS 102 accounts properly, and the capacity to take on more volume without hiring.
Specifically:
- When you outsource year-end accounts UK-wide with Probal Global, you get statutory accounts prepared under FRS 102, FRS 102A (Section 1A for small entities), and FRS 105 (micro-entity regime), covering sole traders, partnerships, and limited companies.
- Work runs through your chosen software: Xero, QuickBooks, Sage, CCH, or IRIS. The completed accounts come back to you for review and sign-off. Your firm’s name is on the accounts; Probal Global is your back-office production team.
- Volume can scale up during the year-end peak without recruiting or retraining staff.
- Converting a fixed headcount cost into a variable one protects margins in quieter months.
The firm’s corporation tax and CT600 preparation service runs alongside year-end accounts production, so the tax computation and the statutory accounts come from the same working papers. If the underlying records need work first, Probal Global’s bookkeeping service can get the ledger to trial-balance standard before accounts preparation starts.
Key takeaways
- FRS 102 mandatory amendments (new lease accounting and revised revenue recognition) apply to accounting periods beginning on or after 1 January 2026. Micro-entities under FRS 105 are unaffected by the lease changes.
- HMRC’s joint filing service closed permanently on 31 March 2026; commercial software is now required for all CT600 submissions.
- Private companies have 9 months from their financial year end to file with Companies House. Late filing carries automatic penalties from £150, doubling for consecutive-year failures.
- Company size thresholds increased from 6 April 2025. Check whether any clients have moved into a different reporting category.
- From 1 April 2028, iXBRL filing becomes mandatory for all Companies House submissions.
- Practices that outsource year-end accounts UK-wide gain extra capacity during the busy season without adding headcount.
Frequently asked questions
What accounting standard applies to UK small company year-end accounts?
Small companies that are not micro-entities can apply FRS 102 Section 1A, which carries reduced disclosure requirements compared with full FRS 102. Micro-entities (meeting at least two of: turnover not more than £1 million, balance sheet not more than £500,000, average employees not more than 10) may use FRS 105 instead. The thresholds for both categories changed on 6 April 2025.
When did FRS 102 last change, and what is the effective date?
The FRC Periodic Review 2024 amendments are mandatory for accounting periods beginning on or after 1 January 2026. The main changes are new lease accounting (right-of-use assets on balance sheet) and a revised five-step revenue recognition model. Early adoption was permitted before that date.
What happened to HMRC’s free online filing service?
HMRC’s ‘File your accounts and Company Tax Return’ online service closed on 31 March 2026. Agents and companies must now use commercial software to file CT600 returns and accompanying accounts with HMRC.
What is the Companies House filing deadline for private limited companies?
Private companies must file annual accounts with Companies House within 9 months of their financial year end. Late filing attracts automatic civil penalties: £150 for up to one month late, rising to £1,500 for more than six months late.
How do I outsource year-end accounts UK-wide with Probal Global?
Probal Global prepares statutory accounts (FRS 102, FRS 102A, or FRS 105 as applicable) using your preferred accounting software. The completed accounts come back to you for review and approval before submission. Your firm remains the client-facing contact throughout; Probal Global works as your production team behind the scenes.
Work with Probal Global on year-end accounts
Ready to outsource year-end accounts UK-wide? If your practice has more year-end accounts to turn around than your team can comfortably handle, or if the FRS 102 changes are adding preparation time you had not planned for, Probal Global can step in. Our year-end accounts preparation service supports UK accountancy firms of all sizes, working within your existing software and review process. Get in touch to talk through how we can help with your accounts backlog or provide the capacity you need through the busy season.