From 1 April 2027, small companies and micro-entities will need to file profit and loss account statements with Companies House. Companies will no longer be able to prepare and file ‘abridged’ accounts.
The changes are being introduced under the Economic Crime and Corporate Transparency Act 2023 to combat money laundering and other fraudulent activity.
What’s changing?
Small companies
Currently, small companies can choose whether to send a copy of the director’s report and profit and loss account statement to Companies House.
From 1 April 2027 small companies will have to file a copy of the balance sheet, director’s report, auditor’s report (unless exempt) and profit and loss account statement. Small companies will no longer be able to prepare and file ‘abridged’ accounts.
A company is ‘small’ if it has any two of the following:
- a turnover of £15 million or less
- £7.5 million or less on its balance sheet total
- 50 employees or less
Micro-entities
Currently, micro-entities only need to send a balance sheet to Companies House.
From 1 April 2027, micro-entities will need to file a copy of their balance sheet and profit and loss account statement.
A company is a micro-entity if it has any two of the following:
- a turnover of £1 million or less
- £500,000 or less on its balance sheet
- 10 employees or less
Impact of the changes
These changes will result in a lot more information being publicly available for small companies. The current filing abridged or ‘filleted’ accounts allowing small business to keep some of the financial details private will no longer be an option.
From April 2027, detailed accounts for all companies will be publicly accessible via Companies House, giving a lot more financial information openly available to all (including to your competitors).
Need help understanding the changes?
Get in contact with us at [email protected] and we can help.