Government scraps obligatory filing plans for small companies
The Economic Crime and Corporate Transparency Act, which was passed in Parliament in 2023, introduced mandatory changes for small companies, including mandatory Profit and Loss (P&L) reporting. These changes were expected to be implemented in April 2027; however, it has now been revealed by the UK government that this is no longer the case.
29th January 2026
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Laura Seaward See profile
Do small companies need to submit P&L reports in 2026?
Small companies, including micro-entities, will not be obligated to submit P&L accounts to Companies House from April 2027 as originally planned. The news broke on Wednesday 28 January via an update to the ‘Changes to UK company law’ section of the government website:
‘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.’
Why are small companies no longer required to submit P&L statements?
All evidence points to stakeholder concerns, with the decision expected by many for some time.
It was feared that, with a P&L account containing commercially sensitive data such as turnover and P&L figures, competitors would be able to gain an edge by understanding their rivals’ exact turnover and/or profits.
In August 2025, Companies House addressed worried stakeholders: ‘Working with the Department for Business and Trade (DBT), we are currently engaging with stakeholders on proposed changes in filing requirements at Companies House to ensure they strike the right balance between tackling economic crime and avoiding undue burden on business.’
Am I a small company?
As of April 2025, the size thresholds that determine the classification of companies increased by 50%. The up-to-date thresholds are as follows.
Small company
For periods beginning on or after 6 April 2025, a small company is defined as meeting two of the following criteria: turnover of £15m or less, balance sheet value of £7.5m or less, or 50 employees or fewer.
Micro-entity
Described as fulfilling two of the following criteria: a turnover of £1m or less, a balance sheet value of £500k or less, or 10 employees or fewer.
What was the government’s 2023 plan for P&L reporting?
The implementation of the Economic Crime and Corporate Transparency Act began in early 2024, although mandatory P&L reporting for small companies was not set to be implemented until 1 April 2027.
The government had planned to make turnover data accessible to the public as part of a broader initiative to combat fraud and create a more reliable and accurate register of companies. It was hoped this would, in turn, reduce the risk of misuse and money laundering while improving the quality of information available.
What does the 2026 change to P&L reporting mean for small companies?
Although there will be no obligation to submit P&L statements publicly, the efficacy of carrying out regular reviews must not be understated. Analysing your turnover and profits with your accountant remains an essential way to provide extra insight into your business’s performance and to help you make informed financial decisions.
If you’d like help making sure your accounts are in order, get in touch.