The planned profit and loss reporting changes for small UK companies have been paused, giving business owners some breathing space. Companies House had planned to require small companies and micro-entities to file profit and loss information with their public accounts from April 2028. However, on 23 October 2026, the government announced that this requirement would be put on hold while it explores simpler ways for businesses to report information.
What has changed for profit and loss reporting?
Under the previous plans, small companies and micro-entities would have had to submit profit and loss accounts to Companies House from 1 April 2028. Although they could have kept this information off the public register, they would still have needed to provide it.
Following recommendations from the Small Business Regulatory Taskforce, the government has paused the requirement. Smaller companies can continue to file abridged accounts or “filleted” accounts, leaving profit and loss details out of the information published on the Companies House register.
Why has the government paused the change?
The government wants to simplify company reporting and reduce duplication by bringing Companies House and HMRC processes closer together. Its “tell Government once” approach aims to reduce the need for businesses to send similar information to different departments.
What does this mean for small businesses?
The profit and loss reporting requirement has been paused, but normal company responsibilities remain. Limited companies must still prepare annual accounts, keep proper accounting records and file accounts with Companies House by the relevant deadline. They must also meet their tax reporting and payment obligations to HMRC.
The pause only affects whether profit and loss information must be included in the accounts made public by Companies House. It does not remove the need to prepare accurate financial statements.
The change applies to qualifying small companies and micro-entities. Sole traders and ordinary partnerships do not file annual accounts with Companies House in the same way as limited companies.
Software filing is still planned for April 2028
Although compulsory profit and loss filing has been paused, another important reform is going ahead. From April 2028, all UK registered companies will need to file accounts using commercial software in iXBRL format.
Companies House plans to close its web and paper-based accounts filing services from that date. Businesses that file accounts themselves will need compatible software or support from an accountant or filing agent.
Other planned changes include a stronger eligibility statement for companies claiming an audit exemption and new requirements for submitting parts of accounts together.
What should business owners do now?
There is no need to change your filing approach solely because of the pause. However, keep your bookkeeping up to date, review how your annual accounts are prepared and consider software options ahead of April 2028.
Good financial records help you understand whether your business is making a profit, manage cash flow and make informed decisions.
Need help with your annual accounts?
The profit and loss reporting pause offers some breathing space, but it does not remove your wider accounting responsibilities. Care Accountancy can help prepare annual accounts, organise financial records and explain the changes affecting your company.
Explore our annual accounts services or contact Care Accountancy for support.
For further information, read the official Companies House announcement and the updated Companies House accounts filing guidance.
This article reflects Companies House guidance announced on 23 October 2026. Further details may follow. It is general information, not individual accounting or legal advice.
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