Sweeping new Company House regulations will mean all UK small businesses will have to use commercial software top file their accounts, but perhaps more worryingly disclose sensitive financial data, in the form of their profit and loss account!
From 1 April 2027 all small and micro businesses will have to submit their full profit and loss statements as part of their annual submission. They will no longer be able to provide juts ‘abridged’ accounts.
These changes will mean a loss of privacy for many small companies. Filing abridged or filleted accounts has been a way for businesses to keep some of their financial details private, particularly from competitors. This won’t be an option in the future.
Companies House is also phasing out its old web-based and paper-filing systems, and from April 2027 all limited company accounts have to be filed using approved commercial accounting software.
The changes are part of the Economic Crime and Corporate Transparency Act 2023, which aims to combat money laundering and other fraudulent activity.
From 1 April 2027 small companies will have to file a copy of the balance sheet, directors’ report, audit report (unless exempt), and profit and loss statement.
Micro-entities currently only need to send a balance sheet to Companies House, but from 1 April 2027 they will need to file a copy of their balance sheet and profit and loss account statement.
Micro-entity is one that has a turnover of less than £1m or less, has £500 000 or less on its balance sheet, and 10 employees or less (it has to have at least two of these).
