From 2027, Your Profit and Loss Account Goes Public

Key Companies House Filing Changes

From 1 April 2027, major changes to company filing requirements will come into force as part of the Economic Crime and Corporate Transparency Act (ECCTA). These reforms aim to increase transparency and reduce economic crime.

What’s Changing?

• Software Only Filing

All companies will be required to file their accounts using commercial accounting software. Paper and Companies House web filing for accounts will no longer be accepted.

• Full Profit and Loss Disclosure

• • Micro entities will need to file both a balance sheet and a profit and loss account.
  • Small companies will need to file a directors’ report, in addition to a profit & loss account.
  • Abridged accounts will no longer be permitted.

Click here to find more detail on updated company size thresholds

• New Disclosure on Audit Exemption

Companies claiming audit exemption will need to include a statement on the balance sheet confirming the exemption conditions are met (including confirmation of which exemption was taken advantage of). This adds an extra layer of transparency on whether and why an audit was not carried out.

• Restrictions on Shortening Accounting Periods

Companies will no longer be able to shorten their accounting reference period more than once every five years without a valid business reason, now aligning with the rules on extending accounting reference periods.

Final Thoughts

These changes represent a major shift for UK companies. For many years, small and micro private limited companies have benefited from reduced disclosure requirements and greater privacy over their financial results. From April 2027, increased transparency will mean more detailed financial information is on public record, impacting profit privacy and potentially changing how businesses present themselves to customers, suppliers, and competitors.

Get In Touch

To discuss how these changes may affect your business, please contact your local Whitings office or your usual Whitings contact.

Disclaimer - All information in this post was correct at time of writing.