Hi

Just a few days ago, Companies House announced what looked like a firm new requirement: from 1 April 2027, small companies and micro-entities would need to file their profit and loss accounts and balance sheets, and in the case of small companies, a director’s report as well.

Now? The future of those plans is looking far from certain.

What’s changed?

In what feels like a case of policy whiplash, the Financial Times reported late last week that the government may scrap those very changes. A source close to the Business Secretary, Jonathan Reynolds, said bluntly: “This would not happen as long as Jonny is in place. It doesn’t fit our plans to cut regulation.”

So what was supposed to be a new chapter in company reporting has suddenly turned into a Schrödinger’s cat scenario: are the new rules alive or dead? We don’t know.

The rules as they stand – for now

The changes, originally introduced under the Economic Crime and Corporate Transparency Act 2023, were part of a wider government push to crack down on fraudulent filings and shell companies.

Companies House issued clear guidance as recently as 1 July 2025 stating:

• From April 2027, small companies (turnover under £10.2m, balance sheet under £5.1m, fewer than 50 employees) will no longer be allowed to file abridged accounts
• Instead, they will be required to file a full P&L, along with their balance sheet
• And all accounts would need to be submitted using commercial software – not paper or the old web filing system

What was the point?

Supporters of the changes argued that mandatory P&L filing would improve transparency, reduce the risk of fraud, and help investors, suppliers and the public see more of what’s really going on in a company’s finances.

But for many small business owners – especially those in competitive industries – it felt like overreach. Why should your financial details be made public, when your competitors aren’t obliged to do the same? Is this really about fraud prevention, or just feeding the curiosity of “nosey neighbours”?

Where does that leave us?

At the time of writing, nothing is confirmed. The Department for Business and Trade said only that they’re “committed to avoiding undue burdens on businesses as part of our Plan for Change”. That’s hardly a ringing endorsement of the filing changes.

Even the language in the official communications is starting to shift. Companies House now says the “intention” is for small companies to file a P&L – and that’s subject to “forthcoming regulations”.

In short: this might not happen after all.

What should you do?

For now, assume that nothing has changed. The rules still stand – at least on paper – and the 2027 deadline still exists.

But be prepared for that to shift, particularly if there’s growing political pressure to reduce regulatory burdens on small businesses. If you’re a small company owner, bookkeeper or accountant trying to plan for the future, this lack of clarity is frustrating.

You may also be wondering: if the goal was to improve trust and transparency, are there better ways to do it? Could we achieve the same aims without exposing sensitive financial information?

And if ID verification for directors and company officers is becoming mandatory anyway (as it is from autumn 2025), maybe the P&L requirement isn’t needed after all.

This is yet another example of policy being announced before it’s properly thought through. Companies House were pushing ahead. So were software vendors. Now, everything’s up in the air.

If the requirement to file a profit and loss account is dropped, it will be welcomed by many small business owners. But if it stays, businesses need clear guidance, enough lead time to prepare, and simple tools to comply. Either way, this uncertainty helps no one.

Noel Guilford