The government has paused the planned requirement for small companies and micro-entities to file profit and loss (P&L) accounts with Companies House from April 2028.
The decision follows recommendations from the Small Business Regulatory Taskforce and means companies will continue to be able to file abridged accounts. Eligible smaller companies will also retain the option to remove, or “fillet”, P&L information from the accounts they file at Companies House. In other words, the P&L can still be left out of the version placed on the public register.
For business owners concerned about the administrative burden and commercial implications of making more detailed financial information publicly available, the announcement provides welcome reassurance. However, the wider move to digital filing is continuing, with mandatory software filing still due to take effect from 1 April 2028.
What is still changing in April 2028?
Although the P&L requirement has been paused, the move to mandatory software filing remains on schedule. From 1 April 2028, web and paper routes will close for accounts filings. UK-registered companies will instead need to submit their annual accounts in iXBRL format using commercial software.
iXBRL is a digital format that tags the information in a set of accounts so it can be read and processed electronically. Accounting software will normally apply the necessary tags, but businesses should check that their chosen product supports iXBRL accounts filing with Companies House. Not all existing accounting software necessarily provides this functionality.
There will be no transition period. Accounts due to be filed from 1 April 2028 will need to be submitted using commercial software, including any revised accounts filed after that date.
The requirement will apply whether a business files its accounts directly or uses an accountant or agent to submit them on its behalf. Companies House web services will remain available for other types of filing, including confirmation statements and changes to director details.
Accounts software providers are expected to update their platforms to enable subsidiaries relying on a parental guarantee to tag and submit their accounts electronically. At present, these filings must be processed manually to allow the relevant group financial statements to be submitted alongside the subsidiary accounts. The wider objective of improving the quality, consistency and reliability of information held on the Companies House register also remains unchanged.
Why businesses should continue preparing
The pause to the P&L filing requirement reduces one aspect of the potential compliance burden, but the transition to software-only accounts filing could still represent a significant operational change.
This may be particularly relevant for businesses that prepare or submit accounts using manual processes, older systems or existing Companies House filing routes.
Ahead of April 2028, businesses should review:
- how their annual accounts are currently prepared and submitted;
- whether their existing software or filing arrangements will support iXBRL accounts submissions;
- whether the software they use for HMRC filings can also file accounts at Companies House;
- whether accounts are filed internally or through an external accountant or agent;
- which accounts will fall due for filing from 1 April 2028;
- who is responsible for preparing, approving and submitting the accounts; and
- whether finance teams will require additional guidance, training or support.
Businesses that use an accountant or agent may not need to purchase filing software themselves, but should confirm their arrangements ahead of April 2028.
Reviewing these areas early should give businesses time to address gaps, update processes and avoid unnecessary disruption closer to implementation. Businesses should also continue to monitor further Government and Companies House announcements, as alternative approaches to the P&L requirement are still being considered and further changes may follow.
Companies House reform and enforcement are continuing
The P&L announcement should not be viewed in isolation. Companies House reforms continue to introduce new responsibilities for companies, directors and other individuals involved in corporate filings.
Identity verification requirements are already moving from implementation into enforcement. The first prosecutions involving directors who failed to verify their identities demonstrate the importance of understanding and meeting the changing requirements.
Taken together, the reforms reflect a broader focus on the accuracy and reliability of information held on the Companies House register, alongside the gradual digitalisation of company reporting.
We’re here to help
Where we already prepare and file accounts on behalf of clients, we use iXBRL-compliant software, so clients should not need to purchase separate filing software or change how they submit their accounts to us.
If you currently file your own accounts, or are unsure whether your existing processes will meet the April 2028 requirements, speak to our team. We can help you understand what is changing, assess your existing filing arrangements and identify any action needed ahead of the deadline.