The government has announced that starting in 2028, micro-entities and small businesses will be required to submit profit and loss (P&L) accounts to Companies House, with the option to keep these accounts private.
Initially, the changes were set to take effect in April 2027, but due to concerns raised by stakeholders, the implementation has been postponed to April 2028.
Filing requirements
From April 2028, both micro-entities and small companies must file a P&L account with Companies House. However, they will have the choice to opt out of making this information public:
- Details regarding the opt-out process have yet to be released.
- Even if a company decides not to publish its P&L account, HMRC (as is currently the case) and law enforcement agencies will still have access to this information to assist in identifying fraud and tax evasion.
- All companies will be required to file their annual accounts using commercial software, which is already a requirement for HMRC submissions. The current web and paper-based filing options at Companies House will be discontinued.
Given that HMRC already receives a complete set of accounts, the general sentiment regarding the option to opt out of publishing P&L accounts is that it may be somewhat redundant; it could lead to increased time and costs.
Considering the existing HMRC filing obligations, companies should verify that their filing software is compatible with the requirements of Companies House.
Other changes
Additional reforms will also be implemented starting in April 2028:
- The option for companies to prepare and submit abridged accounts will be eliminated.
- The frequency with which a company can shorten its accounting reference period will be limited; currently, there are no restrictions on how often this can occur.
Companies House will contact all companies through their registered email address to tell them about the upcoming changes.
The government’s report explaining the changes to accounts filing from April 2028 can be found here.