If you run a small limited company, the way you file your accounts is about to change. Companies House will require small companies and micro-entities to file a full profit and loss account, drop the option to file abridged accounts, and close its web and paper filing routes for accounts. The start date many accountants had pencilled in for April 2027 has now moved.
TL;DR: From April 2028, small companies and micro-entities must file a profit and loss account at Companies House and file accounts through commercial software in iXBRL format. Abridged accounts go, web and paper filing for accounts close, and you can opt out of publishing your P&L. You have about 21 months to get ready.
What's changing at Companies House from 2028?
The headline change is that every company, including the smallest, files more detail and files it digitally. On 9 June 2026 the Department for Business and Trade confirmed the accounts reforms under the Economic Crime and Corporate Transparency Act 2023 take effect from April 2028, not the April 2027 date originally trailed (GOV.UK, 2026).
This is the third and final package under the Act, following the new investigatory powers Companies House already holds and the director identity verification now being rolled out. It affects a lot of businesses: there were 5,479,045 companies on the register at the end of March 2026, and private limited companies make up more than 95% of them (GOV.UK, 2026).
Will small companies have to file a profit and loss account?
Yes. From April 2028, small companies and micro-entities must include a profit and loss account in what they file at Companies House (GOV.UK, 2026). Until now, many small companies filed only a balance sheet, which kept turnover and profit off the public record.
That option is ending. The thresholds for who counts as small or micro also rose on 6 April 2025, so more businesses now qualify: the micro-entity limits are turnover up to £1 million, a balance sheet up to £500,000 and no more than 10 employees (Companies House size thresholds, effective 6 April 2025). In our experience, this is the change directors react to most, because it puts profitability on a record competitors and suppliers can read.
Can you keep your profit and loss private?
Partly. The government added an opt-out so eligible companies can file a profit and loss account without publishing it on the public register (GOV.UK, 2026). The figures still have to be filed; you're choosing whether they appear on the open record at Companies House.
If you opt out, the information isn't gone. Companies House, law enforcement and HMRC keep access to the filed accounts so they can tackle fraud, economic crime and tax evasion. One question clients always ask is whether opting out flags them as having something to hide. It doesn't; it's a standard privacy choice the legislation builds in for smaller businesses.
Abridged accounts go, but the directors' report rule is dropped
Abridged accounts are being removed. From April 2028 you'll no longer be able to file the cut-down abridged version, so the accounts you file will carry more line-item detail than many small companies are used to (ICAEW, 2026).
There is some relief on the directors' report. An earlier proposal would have forced small companies to file one; that requirement has been dropped, so small companies and micro-entities won't need to submit a directors' report with their accounts (ICAEW, 2026). Companies will also need to file all the components of their accounts together rather than piecemeal.
Why will you need commercial software to file?
Because Companies House is moving to software-only filing. From April 2028, every company must file its accounts in Inline eXtensible Business Reporting Language (iXBRL) format using commercial software, and the web and paper-based systems will close for accounts submissions (GOV.UK, 2026). Professional bodies have flagged software readiness as the main practical hurdle for the smallest filers (ACCA, 2026).
Web filing stays open for other jobs like the confirmation statement, but not for accounts. If you currently use the free Companies House web service to type in a balance sheet each year, that route ends. What we see most often is directors who file their own micro-entity accounts manually, and they're the group who'll need to adopt accounts software or hand the job to an accountant. It's the same digital direction as Making Tax Digital, so many businesses will already have compatible tools.
Claiming audit exemption? You'll need a stronger statement
If your company takes an audit exemption, the declaration gets tougher. From 1 April 2028, directors claiming audit exemption must give an enhanced statement on the balance sheet that names the specific exemption being claimed and confirms the company qualifies for it (GOV.UK, 2026).
This raises the bar on getting eligibility right. A company that claims small-company audit exemption it doesn't actually qualify for is now making a specific, named declaration to that effect. If you've grown past the size limits or you're part of a group, this is worth checking well before 2028.
What should small companies do now?
You have about 21 months from the announcement, one full accounting year plus nine months, so there's no need to rush, but a few steps now save pain later (GOV.UK, 2026).
Start by checking how you file today. If you file accounts yourself through the Companies House web service, plan to move to commercial software or an accountant before the 2028 cut-off. Decide early whether you'll opt out of publishing your P&L, and review your audit-exemption position if you're near the size thresholds. A clean year-end accounts process and tidy bookkeeping make all of this easier. The reform sits alongside the director identity verification and reporting changes like FRS 102 lease accounting, so it's a good moment to get your filing house in order.
Frequently Asked Questions
When do the Companies House accounts changes start?
The accounts reforms take effect from April 2028. The government confirmed this date on 9 June 2026, moving it back from the originally planned April 2027 to give companies and software providers more time to prepare (GOV.UK, 2026).
Do micro-entities have to file a profit and loss account too?
Yes. Both small companies and micro-entities must file a profit and loss account from April 2028. Like small companies, micro-entities can choose to opt out of publishing that profit and loss information on the public register, though Companies House, HMRC and law enforcement retain access.
Can I still file my company accounts on paper after 2028?
No. From April 2028, accounts must be filed digitally in iXBRL format using commercial software. Companies House is closing its web and paper filing routes for accounts, although web filing remains available for other submissions such as the confirmation statement.
What counts as a small company or micro-entity now?
The size thresholds rose on 6 April 2025. A micro-entity has turnover up to £1 million, a balance sheet total up to £500,000 and no more than 10 employees. Small companies sit above that, with higher turnover and balance sheet limits, so more businesses now qualify as small or micro than before the increase.
Will my company's profit be public from 2028?
Only if you don't opt out. Small companies and micro-entities can file the profit and loss account without publishing it on the public register. The figures are still filed with Companies House and visible to HMRC and law enforcement, but they need not appear on the open record.
Not sure whether the 2028 changes mean new software, an opt-out decision, or a fresh look at your audit-exemption position? Get in touch - we file accounts for small companies and micro-entities across the UK and can map out exactly what you'll need to change before the deadline.