The long-running debate around Companies House reforms has taken another step forward, with confirmation that small and micro companies will be required to file profit and loss (P&L) accounts from April 2028.
The change forms part of the wider reforms being introduced under the Economic Crime and Corporate Transparency Act (ECCTA), aimed at improving the accuracy and transparency of information held at Companies House.
The proposal to require small companies to file P&L accounts has been one of the most controversial aspects of the reforms. Supporters argue that greater transparency is a reasonable trade-off for the protection of limited liability. Critics, however, have raised concerns that publishing detailed financial information could expose commercially sensitive data and place smaller businesses at a competitive disadvantage.
Following significant pushback from businesses and professional bodies, the government has softened its original position. While small and micro-entities will still be required to submit P&L accounts to Companies House, they will be able to opt out of having those accounts made publicly available.
This means Companies House, HMRC and law enforcement agencies will continue to have access to the information, but competitors, customers and suppliers may not.
Alongside the P&L filing requirement, Companies House has confirmed that accounts will need to be submitted using commercial software in iXBRL format, with existing web and paper filing routes being withdrawn.
For most small businesses, the practical impact is likely to be limited, particularly if the publication opt-out operates as expected. However, businesses should be aware that filing requirements are becoming more digital, more detailed and subject to greater scrutiny.
We expect further guidance from Companies House over the coming months and will continue to keep clients updated as the reforms develop.
