The government confirmed on 9 June 2026 that small companies and micro entities will have to file profit and loss accounts with Companies House from April 2028. The change was originally planned for 2027 under the Economic Crime and Corporate Transparency Act 2023, then paused after concerns about the burden on small businesses. It is now going ahead, with one important concession: you will be able to opt out of having your P&L published on the public register.
If you run a limited company, here is what is changing, what it means for you, and how to prepare without any last minute panic.
What Is Changing from April 2028
1. Small companies and micro entities must file a profit and loss account
Until now, most small companies have filed "filleted" accounts showing a balance sheet but no P&L. From April 2028, the profit and loss account must be delivered to Companies House as part of your annual accounts.
2. You can opt out of publication, but not out of filing
This is the detail that matters most. Filing is mandatory. Publication on the public register is not, provided you make the opt out election. The government has said the mechanics of the opt out will be confirmed nearer the time.
If you opt out, Companies House, HMRC and law enforcement still have full access. If you do not, your turnover and profit become public reading for competitors, customers, suppliers and anyone else who looks up your company.
3. Accounts can only be filed through commercial software
The Companies House web filing and paper routes for accounts are closing. All accounts must be filed in iXBRL format through commercial software, whether you file yourself or use an accountant. Web filing remains available for non accounts filings such as confirmation statements and director updates.
4. Abridged accounts are abolished
The option to file abridged accounts disappears, simplifying the framework to micro entity and small company regimes.
5. Other tightening measures
Directors claiming audit exemption will need to make a strengthened eligibility statement. Companies will face limits on how often they can shorten their accounting reference period. Companies House will also be able to annotate the public register where a company has failed to comply with a notice about its accounts.
Who Counts as a Small Company or Micro Entity?
Under the thresholds that have applied since April 2025, you are generally a micro entity if you meet two of the following: turnover up to £1m, balance sheet total up to £500,000, and up to 10 employees. You are a small company if you meet two of: turnover up to £15m, balance sheet total up to £7.5m, and up to 50 employees.
Most owner managed limited companies in the UK fall into one of these two categories, which is why this change affects so many businesses.
Why Is the Government Doing This?
The official purpose is tackling economic crime. Requiring a P&L closes the gap between what some companies show publicly and what they report to HMRC, and gives Companies House better data to spot fraud. The government also argues that richer, software tagged data will improve the quality of financial information on the register and allow accounts to be aggregated, compared and analysed at scale.
That last point deserves your attention. Because accounts will be filed in iXBRL, your numbers become machine readable. Credit agencies, lenders, insurers and data firms will be able to analyse filed accounts in bulk. Even with the publication opt out, your filed accounts shape how the system sees your business.
What Should You Do Now?
Decide your publication position early. For many small companies, opting out will be the sensible default: there is rarely a commercial upside to showing competitors your margins. But if you plan to raise finance, win larger contracts or build credibility with bigger customers, published accounts that show a healthy business can work in your favour. Make this a deliberate decision, not an accident of how your accounts happen to be filed in 2028.
Move to proper bookkeeping software if you have not already. Software only filing means spreadsheet and paper based companies will be forced onto software anyway. Moving early gives you better management information now and avoids a rushed migration later. If you are already on Making Tax Digital compatible software for VAT, you are most of the way there. If not, our bookkeeping service can get you set up.
Make sure your accounts tell the right story. Banks and major customers already read your Companies House file. From 2028 the data gets richer. Clean, accurate, well presented accounts are about to matter more, not less.
Get your filing process reviewed. If you currently type your accounts into the Companies House website yourself, that route is closing. An HMRC registered agent can file in the correct format, make the right elections, and make sure the opt out is not missed.
How Your Tax Help Can Help
We prepare and file accounts and corporation tax returns for small limited companies across the UK, and we will be handling the 2028 transition for all our company clients as standard, including the publication opt out decision. See our limited company accountant service, or get in touch for a no obligation chat.
Running your business as a sole trader or thinking about incorporating? Our Self Assessment service covers you either way, and if you hold property through a company, our landlord accountants can advise on what the new filing rules mean for property companies and SPVs.
Frequently Asked Questions
Do small companies have to file a profit and loss account from 2028?
Yes. From April 2028, small companies and micro entities must file a P&L with Companies House. They can opt out of having it published on the public register, but not out of filing it.
Will my company's profit be visible to the public?
Only if you do not opt out of publication. If you opt out, your P&L is held by Companies House but not shown on the public register. HMRC and law enforcement can still access it.
Can I still file my accounts on the Companies House website?
Not from April 2028. Accounts must be filed through commercial software in iXBRL format. Web filing remains for confirmation statements and other non accounts filings.
When should I start preparing?
Now. The government has given companies one full accounting year plus nine months of notice before the April 2028 start date, but moving to software based bookkeeping early gives you better information and a smoother transition.
Source: government statement of 9 June 2026 on Companies House accounts filing changes. This article is general information, not advice on your specific circumstances.
