Companies House changes

Small Companies: Will You Still Hide Your Profit & Loss Account?From April 2028, small companies and micro-entities will be required to file a profit and loss account with Companies House as part of the reforms introduced under the Economic Crime and Corporate Transparency Act 2023.
The government has now confirmed that, although profit and loss accounts will need to be filed, smaller companies will be able to opt out of having those accounts published on the public register.
This raises an interesting question for business owners:
If an opt-out is available, will you still choose to keep your profit and loss account private?
Many small companies have historically valued the ability to file abbreviated information, limiting what competitors, customers, suppliers and employees can see about their financial performance.
Others may decide that transparency helps build trust with stakeholders and demonstrates financial strength.
The reforms will not take effect until 1 April 2028, giving companies more than 21 months to prepare from the start of the first affected accounting period.
Key changes include:
• Small companies and micro-entities will be required to file a profit and loss account with Companies House.
• All companies will need to file accounts using commercial software.
• Smaller technical changes to the accounts filing regime.
• An opt-out will be available to prevent publication of the profit and loss account, although full details are yet to be announced.
The real question is whether businesses will embrace greater transparency or continue to keep their profitability out of the public eye.
What would your company do?