Proposed Change: Mandatory Filing of P&L Accounts for Small Companies

Under the reforms introduced in the Economic Crime and Corporate Transparency Act 2023, the government intends to increase transparency by requiring small and micro-entity companies to file profit and loss accounts at Companies House — something they are currently allowed to omit.

Key Proposed Changes:

1. Abolition of abridged and filleted accounts for small companies.
2. Mandatory filing of profit and loss accounts for:
   1. 1. • Small companies
         • Micro-entities
3. Filing of P&L will make turnover, gross profit, and net profit publicly visible, even for small private companies.
4. Companies will no longer be able to “opt out” via abridged or filleted filings to withhold key financial information.

Why This Change?

• To tackle abuse of the UK’s relatively lax reporting rules (e.g. shell companies, fraud).
• To improve corporate transparency and stakeholder trust (banks, suppliers, and investors).
• To bring the UK more in line with international standards.

When Will This Happen?

The government has passed the legislation, but the changes are not yet in effect. Implementation will follow secondary legislation and guidance from Companies House. Here’s the likely timeline:

Stage	Status	Expected Timing
Primary law passed (2023 Act)	Done	October 2023
Secondary legislation & detail	Pending	Expected late 2024–2025
Implementation by Companies House	Pending	Likely mid to late 2025 or 2026

How Likely Is This to Come into Effect?

Very likely. The law has already been passed. Only the mechanism and timeline for implementation remain. Companies House has publicly committed to these reforms as part of its “transformation programme”.

Unless there’s a significant policy reversal, small and micro companies will lose the exemption to hide their P&L accounts.