Small companies and micro-entities will be required to file profit and loss accounts with Companies House from April 2028, as the government presses ahead with a major overhaul of company reporting rules.
The reforms, which form part of wider efforts to improve transparency and tackle economic crime, had originally faced strong opposition from the small business community. Following months of consultation and lobbying, the government has now confirmed that the changes will go ahead—but with a significant concession.
While smaller businesses will need to submit more detailed accounts, they will be able to opt out of having their profit and loss information published on the public Companies House register. This means the data will still be available to Companies House, HMRC and law enforcement agencies, but not necessarily to competitors, customers or the wider public.
The decision has been welcomed by many business groups, which argued that mandatory public disclosure could expose commercially sensitive information and create privacy concerns for owner-managed companies.
Alongside the new filing requirements, the government will abolish abridged accounts, meaning companies will no longer be able to submit simplified versions of their financial statements. However, ministers have dropped plans that would have required small companies to file a directors’ report as part of their annual accounts.
The reforms also mark a major step towards fully digital company filing. From April 2028, all UK companies will be required to submit accounts using commercial software in Inline eXtensible Business Reporting Language (iXBRL) format. Paper and web-based filing routes for accounts will be withdrawn, affecting both businesses that file their own accounts and those that use accountants or agents.
Additional measures include stricter requirements for companies claiming audit exemption, which will need to provide strengthened eligibility statements, and new rules requiring all components of annual accounts to be filed together.
The government has also announced plans to limit the number of times companies can shorten their accounting reference period, although further legislation will be needed before this change takes effect.
Businesses will have a transition period of 21 months to prepare for the new requirements, giving most companies a full accounting year plus nine months to adapt their systems and reporting processes.
Blair McDougall, Minister for Small Business, said the government had listened carefully to concerns raised by stakeholders before modifying the original proposals. Companies House is expected to contact all registered companies directly with guidance on the changes, including details of how the new publication opt-out process will work.
For small businesses, the reforms represent one of the biggest changes to company reporting in years. While the ability to keep profit and loss information off the public register will come as a relief to many, the shift towards more detailed and fully digital reporting means companies will need to begin preparing well ahead of the April 2028 deadline.
