If you run a UK small company or micro-entity, you might have heard about some major changes to Companies House filings originally planned for 1 April 2027.
The proposals would have removed the option to file “abridged” or “filleted” accounts – so more of your business’s financial performance, including profit and loss, could be visible on the public record. Separately, from the same date, you would have been required to file your accounts with software only, and not the current free WebFiling service or by post.
However, following concerns about privacy and the burden on small businesses, the government confirmed in January 2026 that these changes are no longer going ahead on the original timeline. The reforms are paused and under review, with no replacement date.
Read on to understand what was proposed, why the plans were paused, and what to keep an eye on going forward.
Key takeaways
- From April 2027, small companies and micro-entities were due to file profit and loss accounts with Companies House and move to software-only filing.
- The government confirmed in January 2026 that these reforms are paused and under review, with no replacement date.
- While the rules change is pending a final decision, no immediate action is required, as businesses will receive at least 21 months’ notice before any new filing requirements take effect.
What are the current rules for small company accounts?
Under the current rules, small companies and micro-entities can file simplified annual accounts with Companies House. This means they don’t have to include a profit and loss statement or a directors’ report in what appears on the public register.
This is done through what’s known as “abridged” or “filleted” accounts. Abridged accounts use a simplified balance sheet and profit and loss structure. Filleted accounts are full accounts with the profit and loss statement and directors’ report removed before filing. Both options allow small companies to keep sensitive financial information – like turnover, gross profit, and directors’ remuneration – off the public record.
In practice, most small companies prepare full accounts internally (and for their shareholders) but file a reduced version publicly. Accounts can be submitted through Companies House’s WebFiling service, on paper, or through commercial software.
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What happened to the proposed changes to company account filing?
Under the ECCTA, small companies and micro-entities were due to file full profit and loss accounts with Companies House from April 2027, ending the option to file abridged or filleted accounts. A move to software-only filing was also planned for the same date, ending the ability to use the current WebFiling service.
In January 2026, Companies House updated its guidance to state that these changes have been paused. The official guidance on GOV.UK now reads:
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.
This followed months of growing uncertainty. According to the Financial Times, The Guardian, and other UK newspapers in mid-2025, Business Secretary Jonathan Reynolds initially put the plans on hold due to the cost and extra admin they’d create for small businesses. In November 2025, according to The Times, Small Business Minister Blair McDougall said the issue was still being weighed up, with “all options on the table”. But it was only in late January 2026 that the government officially shelved the plans.
The reforms remain under review, with a final decision expected to be announced shortly. For now, there is no replacement date and no action required. If the reforms are resumed, you’ll have 21 months’ notice to prepare.
What were the planned changes to company account filing from April 2027?
Two separate changes were originally planned for 1 April 2027 that would have affected how companies file their accounts with Companies House. Both have now been paused. However, as they could still be implemented in the future, it’s still worthwhile understanding what they are:
Change 1: Filing full profit and loss accounts
The option to prepare and file “abridged” accounts would have ended entirely. Abridged accounts currently allow small companies to file simplified balance sheets without including a profit and loss statement or directors’ report.
The proposals would also have ended “filleted” accounts for small companies. Filleted accounts are where a small company files full statutory accounts, but removes the profit and loss account and directors’ report from the version that appears on the public register.
Under the proposals, micro-entities would also have had to file a profit and loss account on the public register (but they still would not have been required to file a directors’ report).
In both cases, you can currently keep sensitive financial information off the public record. Under the proposals, privacy protection would no longer exist, meaning anyone could have looked up that information.
Change 2: Software-only filing
Under the paused changes, Companies House and HMRC also indicated that software-only filing for all accounts would have come into effect from 1 April 2027. This would have meant:
- You would no longer have been able to use Companies House’s WebFiling service for accounts
- Submissions would have been made through third-party software only
- Paper filing would also have closed for your accounts submissions
- All accounts would have needed to be tagged using iXBRL – Inline eXtensible Business Reporting Language
- Other filings, such as confirmation statements, would still be filed online through Companies House
This was part of the government’s aim to digitise the tax and filing systems, creating a more efficient, secure filing process. It’s paused alongside the proposed changes to transparency rules. It may be cancelled altogether or could still go ahead in some form at a later date.
What information would have become public?
Under the paused plans, your filed accounts could have included significantly more financial detail than what’s currently required. The exact impact would have depended on your company’s size and how you currently file. For small companies, the following would have become publicly visible:
- A full profit and loss account, showing your company’s revenue, expenses, and overall profitability
- A directors’ report
- An auditor’s report (unless exempt from audit)
Micro-entities, which can currently file a simplified balance sheet with very limited notes, would also have had to file a profit and loss account. However, they would have continued to have the option of not preparing or filing a directors’ report.
In both cases, financial information that many business owners currently keep off the public register would have become freely available to competitors, suppliers, and customers.
Who would have needed to file profit and loss accounts with Companies House?
The changes would have affected small limited companies and micro-entities that can currently keep their profit and loss figures private. It would have affected:
- Small companies – those meeting at least two of: turnover of up to £15 million, balance sheet total of up to £7.5 million, and an average of no more than 50 employees for accounting periods beginning on or after 6 April 2025
- Micro-entities – those meeting at least two of: turnover of up to £1 million, balance sheet total of up to £500,000, and an average of no more than 10 employees for accounting periods beginning on or after 6 April 2025
- LLPs – which follow the same size limits and broadly the same accounts filing rules as small and micro companies
Even if you’re a sole director-shareholder limited company with minimal turnover, you would have needed to file a profit and loss account to Companies House, effectively revealing your personal income.
How would public Companies House profit and loss accounts affect your business?
Under the proposals, anyone would have been able to search and view your accounts. This would include:
- Competitors
- Suppliers and customers
- Current and prospective employees
- Lenders and investors
- Journalists and researchers
- Members of the public
What were the potential impacts?
Business groups were primarily concerned about the added administrative burden on small businesses. However, there were several other potential impacts:
- Employee expectations – staff could have pushed for higher salaries if they saw strong profits, or started looking elsewhere if financial performance appeared weak.
- Competitive intelligence – competitors would have gained insight into your business model, margins, and growth trajectory, which they could have used to their advantage.
- Commercial negotiations – suppliers could have used turnover data to assess your ability to pay higher prices or adjusted credit terms based on your profitability.
- Client relationships – clients could have renegotiated rates if they saw substantial profits, or questioned your viability if performance appeared weak.
What are the penalties for non-compliance?
Current penalties for late filing requirements remain in force:
- £150 if your accounts are up to one month late
- £375 if they are one to three months late
- £750 if they are three to six months late
- £1,500 if they are more than six months late
- These penalties double if you file late in two consecutive years.
Prosecution
Directors can be prosecuted for failing to file accounts. In more serious or repeated cases, courts can impose fines and may consider director disqualification.
Company strike-off
If a company repeatedly fails to file its accounts, Companies House can begin strike-off proceedings. This removes the company from the register and transfers its remaining assets to the Crown.
What should businesses do now?
With the reforms officially paused and no replacement date in place, stay informed without taking any premature action. There is a clear direction of travel given Making Tax Digital (MTD) and other changes under the ECCTA, so it’s too early to assume the proposals will be totally scrapped.
Keep an eye on official announcements
The government has committed to giving at least 21 months’ notice before introducing any new accounts filing requirements. Monitor updates from GOV.UK and Companies House.
Continue meeting your current obligations
The existing reporting and filing rules remain unchanged. Keep filing your annual accounts and confirmation statement on time and to the same standard.
Preparing for the new Companies House filing requirements
The proposed changes to small company accounts have been paused, so current filing rules remain in place for now. That means small companies can still file abridged accounts, and micro-entities can continue using the micro-entity framework.
It’s worth keeping an eye on future announcements, but there’s no need to change how you prepare or file your accounts today. If the government does announce a new timeline, the 21-month notice commitment means you’ll have plenty of time to prepare.
If you want help staying on top of your compliance responsibilities, Rapid Formations offers comprehensive services covering company formation, registered office addresses, and ongoing company secretarial support to keep your business on track.
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