In September last year, we highlighted upcoming reforms that would require small and micro companies to file their profit and loss (P&L) accounts with Companies House from April 2027. At the time, the changes formed part of the government’s wider plans to improve corporate transparency and tackle economic crime. 

However, there has now been an important update. The government has confirmed that the proposed reforms will not be introduced on the previously expected timeline, with the requirements now delayed while the policy is reviewed. 

What were the original proposals? 

The planned reforms formed part of the Economic Crime and Corporate Transparency Act 2023, which aims to strengthen transparency and improve the accuracy of the Companies House register. 

Under the proposals, from April 2027 small companies would have been required to file a full profit and loss account alongside their balance sheet with Companies House, while micro-entities would also have needed to submit additional financial information. 

The changes would also have removed the option to file abridged or filleted accounts, meaning profit and loss information would become publicly available. At the same time, Companies House planned to introduce mandatory digital filing through approved software. 

However, following feedback from businesses and industry bodies, the government has decided to pause the rollout of these requirements. Concerns had been raised about the potential impact on smaller businesses, particularly around the public disclosure of commercially sensitive information and the additional administrative burden the changes could create. 

What this means for businesses 

For now, the current filing framework remains unchanged. 

Small and micro companies can continue to submit accounts to Companies House in the same way as they do today, including the option to file filleted accounts that do not include a publicly available profit and loss statement. 

While this delay will come as a relief for many business owners, it does not necessarily mean the proposals have been abandoned entirely. The broader direction of reform under the Economic Crime and Corporate Transparency Act is still focused on improving the accuracy and transparency of the Companies House register. 

What happens next? 

The government is expected to revisit the proposals and consider whether amendments are needed before moving forward. 

If the requirement for small companies to publicly file their profit and loss accounts is introduced in the future, businesses should expect a significant lead-in period before the rules come into force. This would give companies time to adapt their reporting processes and understand the implications of the new requirements. 

Staying prepared 

Although the immediate timeline has shifted, the conversation around greater financial transparency for UK companies is unlikely to disappear. 

Businesses should continue to ensure their financial records are accurate and up to date, and keep an eye on further announcements from Companies House regarding future filing requirements. 

If you have questions about how potential changes could affect your company’s reporting obligations, our team at bk plus would be happy to help.