News
Good News for Small Businesses: P&L Filing Changes Delayed
16 Mar 2026
Some welcome news: the Government has pressed pause on plans to require small companies and micro-entities to file a profit and loss (P&L) account with Companies House.
If you’ve been keeping a nervous eye on those proposals, you can breathe a little easier for now. The changes, introduced under the Economic Crime and Corporate Transparency Act 2023, had been expected to come into force on or after April 2027, and for many business owners, the prospect of sensitive financial information becoming publicly visible to competitors, suppliers, and anyone with an internet connection had been a genuine concern.
So, what’s actually happened?
Companies House has updated its guidance to confirm that the reforms will not be introduced on the April 2027 timeline, and that a final decision will be announced in due course. The shift follows reports that Business Secretary Jonathan Reynolds had expressed concerns about the burden the rules would place on small businesses. A spokesperson for the Department for Business and Trade reinforced this, noting the Government’s commitment to supporting businesses and avoiding unnecessary regulatory burden.
What were the original proposals?
Under the planned changes, small companies and micro-entities would have lost the ability to file abridged or “filleted” accounts, the current option that allows directors to keep their P&L out of the public record. Instead, all trading companies would have been required to file a full profit and loss account alongside their balance sheet.
For context, a small company is generally defined as meeting two of the following: turnover of £10.2m or less, a balance sheet of £5.1m or less, or 50 employees or fewer. Micro-entities sit below that, typically with turnover of £632,000 or less, a balance sheet of £316,000 or less, or 10 employees or fewer.
In short, the proposals would have affected the vast majority of limited companies across the UK, regardless of size or sector.
The debate behind the decision
This had been a genuinely contested area. Supporters of the original reforms argued that greater transparency would help tackle fraud and economic crime, and that making financial data publicly available would improve trust in the UK’s corporate register. Those arguments haven’t gone away entirely.
On the other side, many business owners and their advisors raised legitimate concerns. Making turnover and profitability figures publicly accessible could expose smaller companies to an uneven playing field with larger customers and competitors. It also felt, to many, like an unfair burden on the overwhelming majority of businesses that operate with complete integrity.
What does this mean for you right now?
For now, nothing changes. You can continue filing as you currently do, and the existing rules around abridged accounts remain in place. There is no immediate action required.
That said, “put on ice” is not the same as “cancelled.” The Government has confirmed that the reforms are still under review, so this situation may yet evolve. We’ll be watching developments closely and will keep you updated as any further announcements are made.
If you have questions about your current filing obligations, or if you’d like to understand how any future changes might affect your business, please do get in touch with your WR Partners Advisor, we’re happy to talk it through.
