Small businesses have been given additional breathing space following confirmation that proposed Companies House filing changes will not take effect in April 2027 as previously expected.
Updated guidance from Companies House confirms that plans to require the public filing of profit and loss accounts have been paused and are now under review. No new implementation date has been set.
Companies House has also confirmed that businesses will be given a minimum of 21 months’ notice before any revised timetable is introduced.
What was originally proposed?
The proposed changes formed part of wider reforms under the Economic Crime and Corporate Transparency Act 2023, which are designed to improve corporate transparency and reduce economic crime.
Under the original proposals:
These requirements would have significantly expanded the amount of financial information made publicly available for smaller businesses.
Why the plans have been put on hold
Concerns were raised about whether the proposals struck the right balance between improving transparency and increasing the administrative burden on small businesses.
There were also worries that publishing detailed profit and loss information could expose commercially sensitive data, potentially affecting competitiveness, pricing strategies and supplier negotiations.
In response, Companies House has paused the reforms while the proposals are reconsidered.
A delay, not a cancellation
While this announcement will be welcomed by many small business owners, it should not be viewed as a permanent reversal.
The changes have been delayed rather than abandoned and a revised timetable could still bring profit and loss accounts into the public filing regime at a later date.
Greater transparency remains a clear direction of travel, even if the pace of reform has slowed for now.
What businesses should do next
Businesses should continue to maintain accurate financial records and robust internal reporting processes. Strong record keeping will help ensure you are well prepared if and when further changes are introduced.
We will continue to monitor developments closely and share updates as soon as further guidance is released.
