Companies House has confirmed important changes to the way company accounts will be filed from 1 April 2028.
These changes were previously expected to come in from April 2027, but implementation has now been delayed by a year. This gives companies and their advisers more time to prepare.
For small businesses, the biggest concern was that profit and loss accounts would have to be published on the Companies House public register. This raised understandable worries around privacy, commercial sensitivity and competitors being able to see more detailed financial information. The latest update provides some reassurance.
What’s changing?
From 1 April 2028, small companies and micro-entities will be required to file a profit and loss account with Companies House.
At the moment, many smaller companies file reduced accounts, meaning less financial detail is available publicly. Under the new rules, Companies House will receive more information than it currently does.
However, the important update is that small companies and micro-entities will be able to opt out of having their profit and loss account published on the public register.
This means the P&L will still be submitted to Companies House, but it should not be publicly available if the company chooses to opt out.
Details of exactly how the opt-out process will work are still to be confirmed.
Why does this matter?
For small businesses, the profit and loss account can include commercially sensitive information.
Business owners may not want customers, competitors, suppliers or employees to be able to see details of turnover, gross profit, margins or overall profitability.
The original concern was that this information would become publicly available for many small companies for the first time. The updated position appears to be a more balanced approach: Companies House will receive the information, but smaller companies will have a route to keep the P&L off the public register.
That is a welcome change for many owner-managed businesses.
Software-only filing
Another major change is that all companies will need to file their annual accounts using commercial software from 1 April 2028.
Companies House has confirmed that the current web and paper routes for accounts filing will close from that date.
This means companies that currently file directly through Companies House WebFiling, or still use paper accounts, will need to make sure they are ready to file digitally through approved software.
If your accountant already files your accounts using software, you may not need to do anything immediately. However, it is still worth checking that your filing process will be compliant before the deadline.
What should companies do now?
Although April 2028 may feel some time away, it is sensible to start preparing early.
Company directors should consider:
- whether their current accounts filing process uses appropriate software
- whether they are currently filing micro-entity or small company accounts
- what additional information may need to be submitted from 2028
- whether they may want to opt out of P&L publication once the process is confirmed
- whether their bookkeeping and accounts records are robust enough for the new filing requirements
The key message is to make sure you do not ignore the change.
The delay to April 2028 is helpful, and the ability to opt out of public P&L publication should ease one of the biggest concerns for small business owners.
However, this is still a significant change to company accounts filing.
More information will need to be submitted to Companies House, and businesses that are not already filing through software will need to change their process.
At SeavorChartered, we will continue to monitor the guidance as further details are released, particularly around how the opt-out process will work.
If you are unsure how these changes may affect your company, or whether your current filing process is ready for 2028, feel free to get in touch and speak with our team.
