The requirement for small companies and micro-entities to file their profit and loss accounts with Companies House has been paused following stakeholder concerns, Companies House has confirmed this week.
The news was revealed in an update to the “Filing your Companies House accounts” guidance on gov.uk yesterday.
The new requirement had been expected to come into force from April 2027, but Companies House has now confirmed the changes are under review and will not be introduced on that date. A final decision will be announced in due course, and businesses will be given at least 21 months’ notice before any new rules take effect.
Why has this been delayed?
The proposed changes were part of wider reforms linked to economic crime and corporate transparency. However, concerns were raised about whether forcing small and micro-businesses to publish profit figures struck the right balance between transparency and unnecessary administrative burden.
In particular, many business owners and advisers highlighted the risk of commercially sensitive information being made publicly available, with limited practical benefit.
The government has now acknowledged these concerns and confirmed the reforms are being reassessed.
What were the original plans?
Under the original proposals:
- Micro-entities would have had to file both a balance sheet and profit and loss account
- Small companies would have been required to file a balance sheet, profit and loss account, and supporting reports (where applicable)
These changes would have significantly increased public disclosure for smaller businesses.
What does this mean for you?
For now, nothing changes. Small companies and micro-entities will continue filing accounts as they do today.
The pause will be welcomed by many business owners, especially given that 2027 is already shaping up to be a busy year for compliance, with changes such as payrolling benefits in kind and further phases of Making Tax Digital still planned.
We’ll keep a close eye on developments and update you as soon as there’s clarity. If you’re unsure how this affects your business or future planning, our team is here to help. Contact us here.
