Quick answer
From 1 April 2028, small companies and micro-entities must file a statutory profit and loss account with Companies House. Dormant company accounts are a notable exception and, under current guidance, will not need to include a P&L.
Qualifying companies will be able to keep the information off the public register by using a publication opt-out. The detailed process has not yet been confirmed, so directors should not assume privacy will be applied automatically.
What is changing from April 2028?
Small companies currently prepare a profit and loss account for their shareholders, but qualifying businesses can generally omit it from the accounts filed at Companies House.
Following a government announcement earlier this summer, this will change from 1 April 2028, when profit and loss accounts will be a compulsory submission for small companies and micro-entities. Companies will be able to opt out of having their profit and loss information displayed on the public Companies House register.
The change forms part of the reforms introduced by the Economic Crime and Corporate Transparency Act 2023. The aim is to improve the quality of financial information held by Companies House and make company filings easier for public bodies to analyse.
Alongside mandatory profit and loss account filing, small companies will face several related changes:
- Abridged accounts will be abolished.
- Annual accounts must be filed using commercial software.
- Financial information must be digitally tagged in iXBRL.
- Companies claiming audit exemption must provide a strengthened eligibility statement.
- The required parts of the accounts must be delivered together.
The measures were originally expected to take effect in April 2027, but implementation was postponed until April 2028.
Directors will therefore need to understand the difference between submitting the information and allowing customers, suppliers or competitors to see it.
Current rules compared with the new system
| Current position | From 1 April 2028 |
| Qualifying small companies can usually omit the P&L from filed accounts | Small companies and micro-entities must file a statutory P&L |
| Companies House web filing may be available | Annual accounts must be filed through suitable commercial software |
| Abridged accounts are permitted | Abridged accounts will be abolished |
| No P&L publication decision is normally required | Companies may need to actively opt out of public disclosure |
| Limited structured financial data is filed | Accounts must be digitally tagged using iXBRL |
Filing the P&L does not automatically mean publishing it
The distinction between filing and publication is central to the new rules.
Every affected company will need to submit its Profit and Loss Account to Companies House. There will be no option to withhold the document from the registrar altogether.
The company will, however, be able to prevent the figures from appearing on the public register.
When the publication opt-out is used, Companies House will still hold the information. HMRC and relevant law enforcement bodies will also be able to access it. The restriction applies to public viewing rather than official access.
This should protect commercially sensitive figures from being seen by competitors, customers and suppliers.
Companies House has not yet published the full opt-out procedure. It is unclear whether the choice will be made through accounts software, through a separate application or as part of the filing process.
Until those details are released, directors should work on the assumption that keeping the information private will require an active decision.
Which companies will be affected?
The requirement will apply to companies using either the small companies regime or the micro-entities regime.
What counts as a small company?
For accounting periods beginning on or after 6 April 2025, a company will generally be small if it meets at least two of these three conditions:
- turnover of no more than £15 million;
- a balance sheet total of no more than £7.5 million; and
- an average of no more than 50 employees.
What counts as a micro-entity?
A company will generally qualify as a micro-entity if it meets at least two of the following:
- turnover of no more than £1 million;
- a balance sheet total of no more than £500,000; and
- an average of no more than 10 employees.
Company size is normally assessed over two consecutive accounting periods after the first financial year. Different rules may apply to groups, regulated businesses and companies that are members of ineligible groups.
Businesses close to the limits should confirm their status before preparing their accounts. Crossing a threshold does not always change the reporting regime immediately, but directors should not assume existing exemptions will continue indefinitely.
What will the filed profit and loss account show?
References to a “full” profit and loss account may sound like companies will have to submit detailed internal management accounts. That is not generally the case.
The requirement concerns the statutory profit and loss account prepared under the relevant accounting framework.
Depending on the company’s reporting regime, it may show figures such as turnover, cost of sales, gross profit, administrative expenses, operating profit, interest, tax and the final profit or loss for the year.
It would not normally disclose every bookkeeping transaction, customer-by-customer sales figures or a complete breakdown of individual supplier payments.
Even so, the statutory account may reveal far more about the company’s performance than the balance sheet currently available to the public.
A competitor could potentially estimate margins or overheads. A customer might use the figures during contract negotiations. A supplier could reconsider credit terms after seeing a loss.
Those concerns explain why the publication opt-out will matter to many owner-managed businesses.
Why is Companies House changing the rules?
The government wants the information on the Companies House register to be more accurate, useful and easier to analyse.
Digitally tagged financial statements should make it simpler for Companies House, HMRC and law enforcement agencies to compare figures, identify inconsistencies and investigate suspicious filings.
The new rules may also make it harder for companies to claim reporting or audit exemptions without checking whether they qualify.
There could be benefits for the wider business community too. Lenders, investors and suppliers often use Companies House information when assessing a company, but a balance sheet alone provides limited insight into its trading performance.
The challenge is balancing that transparency against the risk of exposing sensitive commercial information. Allowing companies to restrict public access to the P&L is intended to provide that balance.
What will the changes mean for business owners?
Filing accounts may become more expensive
Companies House plans to close its web and paper-based annual accounts filing services from 1 April 2028.
Every company will need compatible commercial software, regardless of whether the accounts are submitted by a director or an accountant. Businesses that currently use the free Companies House service may therefore face new software or professional fees.
Directors should ask their accountant whether software filing, iXBRL tagging and the publication decision will be included in the annual fee.
We offer software training services to help businesses manage online accounting on platforms like Sage and Xero more effectively. Get in touch today to learn more.
Bookkeeping quality will become more important
Digitally tagged figures can be analysed more easily than information contained in an unstructured document.
That increases the importance of maintaining accurate records throughout the year. Turnover, payroll, dividends, directors’ loan accounts, asset purchases and amounts owed to HMRC should all be recorded and reconciled correctly.
An accountant may prepare and file the final accounts, but the directors remain responsible for ensuring the company keeps adequate records and approves accurate financial statements.
Public disclosure could affect negotiations
For some businesses, publishing the P&L could create a commercial disadvantage.
This is especially relevant where the company operates in a narrow market, relies on a small number of large customers or has unusually high margins. A single exceptional contract or one-off cost could also make the results look stronger or weaker than normal.
On the other hand, publication may help a profitable business demonstrate financial strength when seeking finance, opening supplier accounts or tendering for contracts.
The decision should therefore be commercial rather than automatic.
Should your company opt out of publication?
Directors should consider who is likely to view the accounts and how the figures might be interpreted.
Opting out may be sensible where disclosure could reveal sensitive margins, weaken the company’s negotiating position or give a misleading impression of normal performance.
Publication may be useful where the company wants to demonstrate steady growth or profitability to lenders, investors, suppliers or prospective customers.
Before deciding, directors should ask five questions:
- Could competitors estimate our pricing or margins from the figures?
- Could publication help with finance, credit or tender applications?
- Is the latest financial year representative of normal trading?
- Could customers, suppliers or employees misinterpret the results?
- Are all directors comfortable with the information being publicly available?
Where a company has several directors, the decision should be recorded when the annual accounts are approved.
How to prepare before April 2028
The most important step is to review the company’s existing filing process before the new rules take effect.
Businesses that prepare their own accounts should confirm that their software will support Companies House iXBRL filing. Those using an accountant should ask how the reforms will affect the service, fee and approval process.
Directors should also check that the company still qualifies as small or micro, particularly where turnover, assets or employee numbers have increased.
Any weaknesses in bookkeeping should be addressed early. Leaving reconciliations and corrections until the year-end increases the risk of inaccurate accounts, unexpected tax adjustments, and filing delays.
It will also be important to monitor Companies House guidance. The final process for keeping a P&L off the public register has not yet been explained, and companies will need to incorporate that choice into their year-end procedures once the details are available.
How CRM Oxford can help
The new Companies House filing rules will affect how small companies prepare, approve and submit their annual accounts. We can help you understand what the changes mean for your business, ensuring you are ready before April 2028.
Our team can review your company’s size classification, bookkeeping processes, accounting software and current filing arrangements. We can also prepare and submit compliant annual accounts, advise on audit exemptions and help you assess whether making your profit and loss account publicly available is right for your business.
Preparing early can help you avoid rushed software changes, unexpected costs and the accidental disclosure of commercially sensitive information.
Contact CRM Oxford today to discuss how the April 2028 Companies House changes could affect your company.
Frequently asked questions
Do small companies currently have to file a profit and loss account?
Qualifying small companies currently prepare a P&L for their shareholders but can generally omit it from the accounts delivered to Companies House. From 1 April 2028, filing it will become mandatory.
Will the company’s profit automatically become public?
Not necessarily. Small companies and micro-entities will be able to opt out of public disclosure. However, the process has not yet been confirmed, so directors should expect to make an active choice.
Can a company opt out of filing the P&L completely?
No. The opt-out applies only to publication on the public register. Companies House, HMRC and relevant law enforcement bodies will still be able to access the filed account.
Are abridged accounts being abolished?
Yes. Small companies will no longer be able to prepare abridged accounts once the reforms take effect.
Will every small company need an accountant?
No. Directors may continue preparing their own accounts, provided they use compatible software and comply with the relevant accounting and company law requirements. Professional advice may still be worthwhile where the company has complex transactions, group arrangements or uncertainty about its size classification.
