Government Pauses Plan to Make Small Companies Publish Their Profit and Loss Accounts

If you run a small limited company, here's some news that should make your shoulders drop a little.

The UK government has officially paused the requirement for small companies and micro-entities to file profit and loss (P&L) accounts with Companies House, a change that was due to apply from April 2028.

Let's walk through what's happened, what it means, and what you need to do. (Spoiler: for now, nothing.)

What has actually been announced?

Following recommendations from the Small Business Regulatory Taskforce, the government has put the P&L filing mandate on hold. The aim is simple: cut red tape and reduce the admin burden on small businesses.

In plain English, small companies and micro-entities will not be required to start publishing their profit and loss details on the public record, at least for now.

What does this mean for my company?

Current rules stay in place. Small and micro-entities can carry on filing abridged accounts, and you can keep your profit and loss details off your public filings.

Why has the government done this?

There are two things going on.

1. A push to cut red tape. The pause follows recommendations from the Small Business Regulatory Taskforce, which looked at the burden of regulation on smaller firms.

2. A joined-up approach to filing. The decision is part of a wider "Tell Government once" initiative. The idea is that you shouldn't have to give the same information to Companies House and HMRC separately. Streamlining how the two work together should mean less duplication for you.

What about fraud and economic crime?

Ministers have said they remain committed to tackling fraud and economic crime. But they also say they want to do it without putting disproportionate reporting costs on small businesses.

So the focus is on finding a balance: keeping the UK's business register trustworthy, without making a one-person limited company jump through the same hoops as a major corporation.

Is this permanent?

This is a pause, not a final decision, and the government's plans in this area can change. That's why it's worth having an accountant who keeps an eye on these things for you.

We'll keep watching for updates, and if anything changes we'll let our clients know straight away, with clear steps on what to do (and what not to worry about).

One thing that IS changing in April 2028

The P&L pause is separate from another reform that is going ahead as planned. From April 2028, all UK companies must file their accounts with Companies House using commercial software (in iXBRL format). The Companies House website and paper forms will close for accounts filings. This applies whether you file your own accounts or use an accountant. The website stays open for other filings, such as confirmation statements and director updates.

A few smaller changes also start in April 2028: a stronger eligibility statement for companies claiming an audit exemption, filing the parts of your accounts together, and a limit on how often you can shorten your accounting reference period.

What should I do now?

On the profit and loss, carry on as you are. If you currently file your own accounts through the Companies House website, though, it's worth sorting out software well before April 2028. We're happy to take that off your plate.

Frequently asked questions

Where do you fit in?

⭐ 5-star Google reviews. Over 15 years helping businesses in Peterborough and Market Deeping.

Figures UK Accountancy. Modern accountants serving Peterborough and Market Deeping and beyond. Removing financial stress, one business at a time.

This article is for general information only and isn't personal advice. Please speak to us about your own circumstances.