Companies House pauses plan for small and micro businesses to file P&L accounts

Plans requiring small companies and micro entities to submit their profit and loss (P&L) accounts to Companies House have been put on hold, with the previously expected April 2027 start date now officially off the table. Companies House confirmed the pause following growing concern from professional bodies, accountants, and business owners.

The update, quietly added to the “Filing your Companies House accounts” guidance on gov.uk, stated that the reforms “will not be introduced in April 2027” and that the timetable is being reassessed. Businesses will receive at least 21 months’ notice before any new requirements come into effect.

Reforms under review after pushback

Although no formal press statement accompanied the update, Companies House indicated that the government is reassessing the plans to ensure they “strike the right balance” between tackling economic crime and avoiding unnecessary burdens on smaller businesses.

This means that the previously defined timeline—thought to be fixed after being reaffirmed in mid‑2025—is no longer valid. A new implementation date will be announced once the government reaches a final decision.

A delay many saw coming

The postponement does not come as a shock to many in the profession. Shortly after the 2027 date was confirmed last year, the Financial Times reported that sources close to then–Business Secretary Jonathan Reynolds expected the policy to be reversed. While the Department for Business and Trade did not explicitly confirm this, it signalled that avoiding “undue burdens on businesses” was a priority.

What the original proposal included

The requirement to file P&L accounts formed part of the Economic Crime and Corporate Transparency Act, which aimed to strengthen the registrar’s ability to improve corporate transparency. If implemented as originally designed:

• Micro entities would have needed to file their balance sheet and P&L account, though they would be exempt from filing a directors’ report.
• Small companies would have been required to file their balance sheet, P&L account, directors’ report, and—where relevant—an auditor’s report.

Proponents argued the changes would expose more financial information to public scrutiny. Critics countered that it would unnecessarily reveal commercially sensitive data, particularly for very small businesses.

Relief for an already busy 2027

The pause comes in a year where accountants are preparing for several other significant changes:

• Mandatory payrolling of benefits in kind from April 2027
• The expansion of Making Tax Digital for Income Tax to individuals with incomes above £30,000

With workloads expected to increase considerably, the shelving of P&L filing rules provides many practitioners with welcome breathing space.

Reaction from the accounting profession

Technical author and audit specialist Steve Collings noted that sentiment within the profession was evenly split. Some supported full disclosure on transparency grounds, while others believed mandatory P&L publication served little purpose for small and micro entities.

Collings highlighted that although the government cited compliance costs as a concern, the actual additional effort would likely be minimal given the prevalence of electronic filing. However, he acknowledged that the risk of placing sensitive information into the public domain remained a major worry among business owners and advisers.

He also questioned whether the proposed measure truly aligned with the Act’s goal of tackling financial crime, arguing that the vast majority of small companies are not involved in fraudulent activity. Labelling the requirement as a crime‑prevention measure, he said, felt “disproportionate”.

Community response: relief and approval

Early reaction from accounting communities has been largely positive. Many practitioners expressed relief that small traders and sole directors will not have their income publicly accessible via Companies House.

One commenter pointed out that requiring a sole director’s P&L effectively reveals their personal earnings—something many felt was intrusive and unnecessary.

Looking ahead

With the reforms paused and a new timeline yet to be announced, the government’s next steps will be watched closely by the profession. For now, small companies and micro entities can continue filing under existing rules, with the assurance that any future changes will come with substantial notice.