From April 2028, small firms and micro‑entities will have to submit a profit and loss statement to Companies House, a shift that could affect thousands of UK businesses.
New filing requirements for small businesses
Currently, limited companies already file a profit and loss account, which is made public. Small and micro companies can usually opt out of publishing those figures. The upcoming rule removes that option, meaning the financial summary must be filed and kept on the public register.
Companies House says the change will improve transparency and help firms secure financing. Critics argue the benefit is limited, especially for owners who prefer to keep sensitive data private.
Steven Mather, a lawyer and director at Steven Mather Solicitor, described the reform as “practically homeopathic,” noting that businesses will now need to purchase commercial software to file accounts that were previously prepared for free.
Colette Mason, an AI ethics consultant at Clever Clogs AI, warned of privacy concerns, adding that “many small business owners operate in competitive markets and value financial confidentiality.” She called for government action to reduce compliance costs and strengthen data protection.
Other accounting changes slated for 2028
All firms must file annual accounts in the Inline eXtensible Business Reporting Language (iXBRL) format using commercial software. This applies whether the filing is done in‑house or through an accountant.
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Paper‑based filing for accounts will be discontinued, though paper submissions will remain available for non‑account filings such as confirmation statements and director updates.
Companies will no longer be able to submit abridged accounts, a simplified version often used by smaller entities. Directors must also provide a strengthened eligibility statement when claiming an audit exemption, confirming that the company meets the criteria for small, micro, or dormant status.
Another adjustment concerns the ability to shorten a company’s financial year. While firms can currently adjust their accounting period repeatedly, the upcoming rules will limit how often this can be done, though details have not yet been released.
These measures collectively aim to create a more uniform filing system, but they also add a layer of administrative work for owners already coping with tight margins.
Businesses receiving the upcoming notification should prepare by reviewing their current accounting processes and assessing software options that meet iXBRL standards.
