Ministers Announce U‑Turn on Profit & Loss Disclosure on Companies House for Small Firms

Accountable
Oct 9
2 min read

Ministers have announced a major U‑turn on planned filing reforms originating from the Economic Crime and Corporate Transparency Act 2023. The reversal clarified that small and micro entities will not be required to file full profit & loss statements publicly, after widespread concern over the original proposals announced by Companies House on 25 June 2025.

Need help making sense of Companies House updates? Speak to an expert today.

What Was on the Table?

The legislation originally proposed that, from April 2027:

Small and micro companies would lose the ability to file abridged accounts.
Instead, they would have to submit full profit and loss accounts to Companies House.
These figures would then be made publicly available, exposing turnover, costs, and profits for anyone to see.

This marked a significant shift from long-standing privacy protections for small businesses.

Who Pulled the Brakes, and Why?

Ministers Intervened Business Secretary Jonathan Reynolds and officials decided to pause these specific reforms, marking this as a ministerial decision, ‘not something initiated by Companies House’

Backlash from SMEs and Startups Groups like the Federation of Small Businesses, local accountants (including Accountable) and SMEs raised objections around costs, administrative burdens, and competitive disadvantage
Bias Toward Cutting Regulation The move aligns with a government-led strategy to ‘slash red tape by 25%’, with ministers stating that the profit & loss mandate “doesn’t fit” this policy direction

What This Means for You

Privacy Protected: Small and micro-entity profit & loss figures will remain non-public.
Reforms Paused (but not cancelled): The government emphasised this as a temporary suspension, and it's worth noting that Companies House has not yet announced the removal.
Other Reforms Still in Play: Measures such as director identity verification and enforcement under the Economic Crime Act are continuing apace.

Worried about what's still changing? Get clarity about compliance from our team.

Need Support or Clarification?

At Accountable, we make it our business to stay ahead of regulatory change so you don’t have to. If you’re unsure how this impacts your filing obligations or want support preparing compliant and strategic accounts, we’re here for you.

Please get in touch if you'd like tailored guidance or just want to get ahead of your financial compliance.

If you're unsure how these changes affect your reporting or compliance, we can help you: