If you run a small or micro limited company, you may have heard about changes to the way annual accounts are filed with Companies House.
Following several revisions to the proposals, the government confirmed in October 2026 that plans to require small companies and micro-entities to submit their Profit and Loss (P&L) accounts from April 2028 have been put on hold.
However, other changes are still going ahead, including mandatory software filing for all UK registered companies.
So, what’s changing, what’s staying the same, and what does it mean for your business?
Why are Companies House filing rules changing?
The government has been introducing reforms under the Economic Crime and Corporate Transparency Act 2023 to improve the accuracy and transparency of company information and help tackle economic crime.
One proposal was to require small companies and micro-entities to provide more detailed financial information when filing their annual accounts.
However, concerns about additional administration, costs and commercial privacy have led to several changes in direction.
The government has now paused the additional P&L filing requirement while it considers alternative approaches.
Will small companies have to file their Profit and Loss accounts?
Not under the proposed April 2028 requirement, as the government has now paused these plans.
A Profit and Loss account shows how much income a business has earned, what it has spent and whether it has made a profit or loss over a particular period.
Under the previous proposal, small companies and micro-entities would have had to submit this information to Companies House, even if they chose not to make it publicly available.
Submitting financial information to Companies House and making it available to the public are not necessarily the same thing.
Now that the requirement has been paused, eligible companies can continue to omit their P&L from their publicly filed accounts under the existing rules.
The option to prepare abridged accounts will also remain available, and there’s currently no confirmed date for introducing an alternative requirement.
Does this mean less work for your business?
Not really, as the day-to-day accounting requirements haven’t changed.
You’ll still need accurate records of your income and expenses, and your accountant will still need the information required to prepare your annual accounts and tax return.
The main difference is that eligible companies won’t have to submit the additional P&L information that had been proposed for Companies House.
So, while the filing rules may be staying simpler for now, the work involved in preparing your accounts remains much the same.
What’s still changing in April 2028?
While the P&L filing requirement is on hold, one significant change remains on the timetable.
From 1 April 2028, all UK registered companies will need to file their annual accounts using commercial software, rather than the existing Companies House web or paper filing services.
Accounts will need to be submitted in a digital reporting format called iXBRL, which allows financial information to be processed electronically.
What does this mean in practice?
If your accountant already prepares and submits your accounts using suitable software, you may notice very little difference.
However, if you currently file your own accounts through Companies House’s online service, you’ll need to make alternative arrangements. That could mean choosing suitable filing software or asking an accountant to submit your accounts on your behalf.
It’s also worth checking whether your existing accounting software supports iXBRL filing, as not every package currently offers this functionality.
There won’t be a transition period after 1 April 2028, so it’s important to plan ahead.
Companies House’s online services for other filings, such as confirmation statements and director updates, will remain available.
Other reforms are also planned, including changes to audit exemption statements and restrictions on how frequently companies can shorten their accounting reference periods.
What happens next?
The government is exploring ways to make financial reporting more straightforward, including reducing the need for businesses to provide similar information separately to Companies House and HMRC.
The aim is to simplify the process, although it’s still too early to know exactly what the new approach will look like.
For now, the additional P&L filing requirement is paused, but further changes may follow.
What should your business do now?
There’s no need to make any rushed decisions, but it’s worth reviewing how your company currently prepares and files its accounts.
A few things to consider:
- How are your accounts currently filed? If you file them yourself through Companies House, you’ll need to prepare for the move to commercial software.
- Is your accounting software suitable? Check whether it supports the required filing format.
- Are your financial records up to date? Accurate bookkeeping makes preparing annual accounts easier and helps you understand how your business is performing.
- Do you have the right support? Speak to your accountant if you’re unsure how the changes affect your company.
And remember, while the new P&L filing requirement is paused, your existing accounting and tax obligations haven’t changed.
Our thoughts at Starfish
We’re all for making accounting simpler, but introducing more technology doesn’t automatically mean less work.
While mandatory software filing is another change to prepare for, digital accounting can offer benefits beyond meeting filing requirements.
Having reliable, up-to-date financial information can help you understand your cash flow, keep track of profitability and make more informed decisions about your business.
After all, your accounts shouldn’t just be something you file once a year. They should help you understand how your business is performing and where it’s heading.
The bottom line?
The additional P&L filing requirement for small companies and micro-entities is on hold, but mandatory software filing is still coming in April 2028.
We’ll be keeping a close eye on further announcements to help our clients stay informed.
Not sure what the changes mean for your business, or whether your current accounting setup is ready?
