After years of speculation, the Government has finally confirmed that the long-awaited Companies House accounts filing reforms will come into force from April 2028.
While the proposed changes have been in the public domain since 2022, no implementation date had been announced, leaving businesses wondering whether the reforms would ever become a reality. The announcement provides certainty and confirms that work on the corporate transparency and economic crime reform programme is continuing.
Keeping profit and loss off the public register
When details of the reforms first emerged four years ago, one of the most widely discussed proposals was the requirement for small companies and micro-entities to file a profit and loss account and directors’ report with Companies House. At the time, many business owners were concerned that more detailed financial information, including profit and loss figures, would become publicly available.
Now that the implementation date has been confirmed and the final details clarified, there is some welcome reassurance for smaller businesses:
- While companies will be required to file a profit and loss account with Companies House, they will have the option to prevent this information from appearing on the public register; and
- Small companies will also not be required to file a directors’ report, representing a notable relaxation of the original proposals.
The practicalities of opting out of public disclosure of profit and loss information are yet to be confirmed, with further guidance expected nearer the implementation date.
Importantly, opting out of publication will not prevent regulatory oversight. Companies House, HMRC and law enforcement agencies will still have access to profit and loss information to help identify and tackle fraud, economic crime and tax evasion.
What are the key changes?
The reforms will nevertheless represent a significant change to the accounts filing regime for small companies and micro-entities. The key measures include:
- Requiring small companies and micro-entities to file a profit and loss account with Companies House, while allowing them to opt out of public disclosure of this information;
- Requiring all companies to file annual accounts via commercial software – meaning paper filing is no longer available;
- Removing the option to file abridged accounts;
- Introducing a strengthened eligibility statement for companies claiming an audit exemption;
- Requiring component parts of the filed accounts and reports to all be filed together; and
- Reducing the number of times a company can shorten its accounting reference period.
How M+A Partners can help
While the reforms are still some time away, the confirmation of an implementation date gives businesses the opportunity to start planning ahead. Although many companies will see little immediate impact, the changes will affect how accounts are prepared and filed with Companies House.
We will continue to monitor developments and keep you informed as further guidance is released, including details of how profit and loss information can be withheld from the public register. If you have any questions about how the reforms may affect your company or reporting obligations, please get in touch with your usual M+A Partners’ contact or our experts below.
