Plans to require small companies and micro-entities to file their profit and loss accounts publicly have been formally paused, removing (for now) one of the most controversial elements of the recent Companies House reform programme.
Following an update to official guidance in late January, Companies House confirmed that the proposed changes to accounts filing will not be introduced in April 2027 as previously announced. Instead, the reforms are under review, with a final decision expected “shortly”. Crucially, any eventual changes will come with at least 21 months’ notice, giving businesses and advisers more time to prepare.
What was supposed to change?
The proposal to make profit and loss accounts public for smaller companies formed part of the Economic Crime and Corporate Transparency Act, which significantly expanded the registrar’s powers and aimed to improve corporate transparency.
Under the original plans:
- Micro-entities would have been required to file both a balance sheet and a profit and loss account, with no directors’ report.
- Small companies would have needed to file a balance sheet, profit and loss account, directors’ report and (where applicable) an auditor’s report.
The stated rationale was straightforward: more financial data in the public domain would help deter fraud and improve confidence in the UK company register.
Why has it been paused?
Although the April 2027 date had appeared settled, concerns quickly surfaced across the business and advisory community. Feedback centred on whether the proposal struck the right balance between transparency and proportionality.
The government has now acknowledged those concerns, citing the need to avoid imposing undue administrative and commercial burdens, particularly on genuinely small businesses. The delay also reflects wider pressure on the compliance calendar: 2027 is already shaping up to be a demanding year, with mandatory payrolling of benefits in kind and the next phase of Making Tax Digital for income tax both scheduled for April.
Our view
From what we see across our client base, the pause is a sensible one. Transparency matters — but so does proportionality. If reforms return, we expect them to be more targeted, better explained, and ideally supported by clearer evidence that public P&L disclosure genuinely helps combat financial crime.
For now, small companies can take some comfort: nothing changes imminently, and there is time for a more measured debate before any final decision is made.
