Profit and loss filing changes for micro-entities and small companies
The government has confirmed that micro-entities and small companies will have to file profit and loss (P&L) accounts with Companies House from 2028, but can then choose whether these accounts are made public.
The original intention was that changes would come in from April 2027, but, following stakeholder concerns, reform has been put back to April 2028.
Filing requirements
Both micro-entities and small companies will have to file a P&L account with Companies House from April 2028. However, there will be the option to opt out of publishing this information on the public register:
- Details of the opt out have not yet been published.
- Even if a company opts out of publishing its P&L account, HMRC (as is currently the case) and law enforcement will still have access to help identify fraud and tax evasion.
- All companies will have to file their annual accounts using commercial software, which is already the case for HMRC filings. The existing Companies House web and paper-based accounts filing routes are to be closed.
With HMRC already receiving a full set of accounts, the general response to the profit and loss option to opt out is that it is somewhat pointless; it will just mean more time and costs.
Given the existing HMRC filing requirement, companies should ensure that the filing software they use can also support the Companies House requirements.
Other changes
Some other reforms will also be brought in from April 2028:
- The option for companies to prepare and file abridged accounts is to be removed.
- The number of times a company can shorten its accounting reference period will be reduced; there are currently no restrictions on how often this can be done.
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.
