Despite government plans to tighten company reporting regulations at Companies House, the Chancellor recently announced intentions to ‘cut red tape’ for small to medium businesses.
The rules for filing company accounts due to take effect from 1st April 2027 include:
- Micro-entities and small companies must file profit and loss accounts
- Small companies need to file a director’s report
- All companies can no longer file abridged accounts
However, as per the statement from Chancellor Rachel Reeves, the government intends to reduce pointless form-filling so that thousands of businesses can save time and money on admin.
Here’s more information on what could be changed for company reporting in 2027.
Loosening company reporting requirements
According to the Chancellor, the requirement for all companies to file a director’s report at Companies House is going to be removed. However, some aspects of the director’s report will be included in other parts of the company’s financial statements instead.
Additionally, medium-sized private companies will no longer be required to produce a strategic report explaining their business strategy and performance as part of their annual accounts.
Of course, companies will welcome any lightening of their administrative burden, but there are also concerns that the Chancellor’s latest plans don’t go far enough.
Further increasing company size thresholds
Companies House already significantly increased company size thresholds from April 2025, but the Chancellor has announced that these thresholds will be increased again.
For a company to be categorized as a micro-entity or a small company, its turnover, balance sheet total, and number of employees must be below the following thresholds:
| Micro-entity | Small company | Medium company | |
| Turnover | £1 million | £15 million | £54 million |
| Balance sheet | £500,000 | £7.5 million | £27 million |
| Employees | 10 | 50 | 50 |
These current thresholds apply to accounting periods that began on or after 6th April 2025. If they are increased again, more businesses will qualify for benefits such as reduced reporting requirements for micro-entities and potential audit exemptions for small companies.
Get help with filing annual accounts
Not sure about the Companies House annual accounts filing requirements, or how the latest company reporting regulations affect your business? Guidance on Companies House annual requirements is available online, but you also have the option of utilising professional accounts management.
At gbac, our experienced accountants in Barnsley can assist companies of all sizes with financial management services, covering bookkeeping, tax consultancy, statutory filing, and more.
To discuss what our team can do for your business, call 01226 298 298 or email info@gbac.co.uk today.