Last week, Companies House confirmed significant changes to UK company filing requirements that will impact small companies and micro-entities. From April 2027, all limited companies - regardless of size - will be required to file a profit and loss account as part of their annual accounts submission.
This marks the end of long-standing exemptions that allowed smaller firms to file abridged or filleted accounts with limited financial disclosure. Under the new rules:
- Micro-entities must file both a balance sheet and a profit and loss account.
- Small companies must file a balance sheet, profit and loss account, directors’ report, and (if applicable) an auditor’s report.
- The option to file abridged accounts will be abolished.
- All filings must be submitted using commercial software, as Companies House phases out paper and web-based filing systems.
These changes are part of the government’s broader Economic Crime and Corporate Transparency Act, aimed at improving data accuracy, reducing fraud, and increasing corporate transparency.
While the reforms are well-intentioned, many small business owners have raised concerns about the potential loss of commercial confidentiality and the added cost of compliance. Competitors, suppliers, and clients will now have access to detailed financial performance data that was previously private.
How might this affect you?
At our firm, we’re already preparing for this shift and advising clients on how to adapt. If you’re unsure how these changes will affect your business - or what steps to take next - please get in touch. We’re here to help you stay compliant and confident.
Author, Justin Moore - Partner
