UK Small Firms Face New P&L Filing Rules From April 2028

The UK government confirmed on June 10 that small companies and micro-entities must file profit and loss accounts with Companies House starting April 2028. The change affects approximately two million businesses and forms part of the 2023 Economic Crime and Corporate Transparency Act. While firms must submit the data to tax authorities, they can opt out of public disclosure. The delay from the original April 2027 date gives businesses 21 months to prepare.

What Small Firms Must Do From 2028

From April 2028, small companies and micro-entities must file profit and loss accounts alongside their standard annual filings. All companies will also be required to file accounts using commercial software instead of the current range of filing methods. The government says the changes will improve transparency and help HMRC and law enforcement identify fraud and tax evasion. The UK’s tax gap currently stands at an estimated £47 billion annually.

Privacy Option Offered After Industry Pushback

Following feedback from business groups, the government confirmed that small firms can opt out of having their P&L accounts published on the public Companies House register. The financial information will still be submitted and available to HMRC and law enforcement agencies. This compromise balances transparency requirements with concerns about commercial confidentiality for smaller businesses.

Business Groups Criticize the Reforms

Small business groups have pushed back against the changes, calling them yet another burden for stretched firms. The Federation of Small Businesses claimed the government had broken its promise that extra disclosure would not be required. Craig Beaumont, FSB executive director, said the reforms would make it more expensive to start and run a small company. Business groups argue the changes will suppress growth at a time when firms face higher energy costs and taxes.

Why the Government Is Pushing Ahead

The government says the reforms strengthen corporate reporting and support efforts to tackle economic crime. Officials argue greater access to financial information will assist law enforcement in identifying fraud and tax evasion. The changes form part of a broader effort to improve the quality and consistency of information held on the Companies House register. The extended timeline to April 2028 gives businesses and software providers additional time to prepare for the new requirements.

Final Thoughts

Small UK firms must file P&L accounts from April 2028, but can keep them private from the public. The trade-off between transparency and confidentiality means businesses face new compliance costs without full public exposure of their finances.

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The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.