Companies House profit and loss filing changes on hold

If you run a small company or micro-entity, you may have heard about proposed changes that would require you to file profit and loss accounts with Companies House from April 2027.

Had they gone ahead, things such as your turnover and profit figures would have become visible to anyone searching the public register. A planned switch to software-only accounts filing was also set for the same date.

However, the government confirmed in January 2026 that neither change is happening on the original timeline. The reforms are paused and under review, with no replacement date.

The updated guidance now states:

Changes to accounts filing will not be introduced in April 2027. The reforms are still under review and a final decision will be announced shortly. Companies will receive at least 21 months’ notice to prepare.

Your annual accounts can continue to exclude profit and loss information from the public register, and you can keep using the existing WebFiling service until further notice.

Read on as we explain what was proposed under the Economic Crime and Corporate Transparency Act 2023 (ECCTA), how the situation developed, who would have been affected, and what you should do to stay prepared.

What were the proposed changes?

The Economic Crime and Corporate Transparency Act 2023 (ECCTA) introduced two separate changes to how companies file their accounts, both originally planned for 1 April 2027. Both have now been paused.

Mandatory Companies House profit and loss disclosure

The first change would have stopped small companies from keeping profit and loss figures off the public register by removing two existing filing routes:

1. “Abridged” accounts (a simplified set of accounts)
2. “Filleted” accounts (where the profit and loss account and directors’ report are removed from the version placed on the public register).

Small companies would have been required to file a profit and loss account with Companies House, making key profit and loss information publicly available.

Micro-entities are not affected by the abridged and filleted options in the same way. However, under the proposals, micro-entities would also have been required to file a profit and loss account with Companies House, so their profit and loss information would have become publicly visible too.

For sole director-shareholder companies, making turnover and profit or loss publicly available could have made it easier to infer the owner’s personal income, which was one of the most contentious aspects of the proposals.

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Software-only accounts filing

The second change would have closed the Companies House WebFiling service and paper filing route for accounts. All submissions would have required commercial software capable of iXBRL tagging, which is a digital format that makes accounts machine-readable.

This was part of a broader push to modernise and digitise how companies prepare and file their accounts. Both changes were paused at the same time.

Who would have needed to file profit and loss accounts to Companies House?

The proposals targeted businesses that can currently keep their Companies House P&L figures private. This would have included:

• Small companies – those meeting at least two of: turnover up to £15 million, balance sheet total up to £7.5 million, and no more than 50 employees on average for accounting periods beginning on or after 6 April 2025.
• Micro-entities – those meeting at least two of: turnover up to £1 million, balance sheet total up to £500,000, and no more than 10 employees on average for accounting periods beginning on or after 6 April 2025.

Even if your company has minimal turnover and you’re the only director and shareholder, you would have been required to file profit and loss accounts to Companies House under the proposals.

What are the current filing rules?

Nothing has changed for now. Small companies and micro-entities can still exclude their profit and loss statement from the public register.

How you file depends on your company’s size:

• Small companies can file filleted accounts (full accounts with the P&L and directors’ report removed before public filing), abridged accounts (a simplified balance sheet and, optionally, a simplified P&L where turnover can be combined into a single “gross profit or loss” line), or filleted abridged accounts (abridged accounts with the P&L removed)
• Micro-entities can file a simplified balance sheet. There’s no requirement to file a P&L or directors’ report

You can submit your accounts through the Companies House WebFiling service, on paper, or through commercial software. In both cases, turnover and detailed profit figures can be kept from the public register.

How the situation developed

The proposals attracted pushback almost immediately, with many directors and business advocacy groups questioning whether making their financial details public would do more harm than good. Here’s how it played out:

• June 2025 – Companies House confirmed the changes to accounts under the ECCTA, including Companies House profit and loss disclosure and software-only filing, would take effect from April 2027.
• July 2025 – Business Secretary Jonathan Reynolds signalled a
• pause, with the Financial Times and The Guardian reporting concerns about cost and administrative burden on smaller firms.
• November 2025 – Small Business Minister Blair McDougall indicated the issue was still under consideration, with all options being weighed up.
• January 2026 – Companies House updated its official guidance on accounts filing to confirm the reforms would not go ahead in April 2027.

Will the government resume the changes?

It is possible. The government has described them as “under review” and indicated a final decision will be announced “shortly” – though no timeline has been given for that decision either.

The broader direction of travel still points towards greater transparency. The ECCTA remains law, and other reforms under the Act – such as mandatory identity verification for directors – are pressing ahead.

It’s reasonable to expect changes to return at some point, even if the scope or timeline looks different. Given the guaranteed 21-month notice period, any future changes will be announced well in advance. They’re also likely to attract further debate if the government decides to revisit them.

Why did the proposals cause concern?

Making Companies House P&L accounts public raised serious questions about administrative burden and financial privacy for small business directors.

Under the proposals, your filed accounts would have included a profit and loss account – meaning figures such as turnover, gross profit, and profit before tax would have been visible to anyone searching for your company.

The consequences could have included:

• Competitors could gain direct insight into your margins, pricing, and growth.
• Suppliers and clients could use your figures to renegotiate terms.
• Employees could adjust salary expectations based on visible profits.
• For contractors and single-owner companies, published turnover would essentially expose personal income.

These concerns were a leading factor in the government’s decision to pause.

What steps should you take now?

With no immediate changes on the horizon, the best strategy is to stay informed and continue meeting your existing obligations.

Keep filing on time

The current annual filing requirements remains unchanged. File your annual accounts by the deadline based on your accounting reference date, and submit your confirmation statement within 14 days of each review period.

Monitor official updates

The government has guaranteed at least 21 months’ notice before any new requirements take effect. Keep an eye on GOV.UK and the Companies House blog on small company filing changes for developments.

Avoid rushing into structural changes

Some directors have considered switching from a limited company to sole trader status to sidestep potential disclosure requirements. It’s worth waiting until the policy direction is clearer before considering that kind of decision.

Keep your financial records in order

Whether or not the reforms return, well-organised records make compliance easier and put you in a stronger position if requirements change.

Prepare now, adapt later

The planned requirement for small companies to file profit and loss accounts to Companies House has been paused, with no confirmed replacement date.

For now, the existing rules remain in place, and you can continue filing in the way you’re used to. The direction of travel points towards greater transparency, but the timing and scope of any future changes remain uncertain.

Staying informed, keeping your records tidy, and continuing to meet your deadlines are the best strategies right now.

If you’re looking for ongoing support with your compliance responsibilities, now and in the future, consider our Hassle-Free Compliance Service. And if you’re ready to set up a limited company, 1st Formations provides everything you need to get started with confidence.