Mandatory filing of P&L accounts for small companies: what the changes are in 2028

A practical guide for business owners and directors

From April 2028, small companies and micro‑entities will face significant new obligations under government reforms to company accounts filing. These changes, stemming from the Economic Crime and Corporate Transparency Act, aim to improve transparency, modernise reporting, and combat economic crime.

If you run a small business, understanding these rules now is vital to prepare for the transition. While the reforms add new requirements, there are also important safeguards introduced to protect privacy and reduce unnecessary burden. Here’s what you need to know.

1. What is changing and why does it matter?

Currently, small companies and micro‑entities can choose simplified reporting options, including abridged accounts, with limited public disclosure. This is set to change.

From April 2028:

• All small companies will need to file a full balance sheet and profit and loss (P&L) account with Companies House.

• The long‑standing option to submit abridged accounts will be abolished.

• Accounts will only be accepted via commercial software, filed in iXBRL (Inline eXtensible Business Reporting Language) format. 

The government argues these changes will create a more accurate, reliable register, strengthening the UK’s reputation for corporate transparency. In practice, this means lenders, investors, and regulators will have greater confidence in company information. 

For businesses, failure to comply could lead to delays, penalties, and reputational risks. Early planning is therefore critical.

2. Does this mean your accounts will be public?

Not entirely. After strong opposition from the small business community, the government has included an important concession: small companies and micro‑entities can opt out of publishing their P&L account on the public Companies House register. 

Choosing this opt‑out means your figures will remain confidential to the public, but will still be available to Companies House, HMRC, and law enforcement for anti‑fraud and tax compliance purposes.

For some businesses, especially those in competitive sectors, the ability to maintain confidentiality will be welcome. Others may decide that publishing full accounts could support financing or partnership opportunities. The decision should be strategic and based on your company’s circumstances.

Details of how the opt‑out will work are still to come, but it is expected to involve a clear declaration during the filing process.

3. Goodbye abridged accounts and other key reforms

The removal of abridged accounts means all companies, large or small, will prepare and file a single, consistent format. This should simplify the landscape but will require small businesses to adapt their internal processes.

Other important changes include:

• Mandatory software filing: From April 2028, Companies House will close its paper and web-based filing systems for accounts. All submissions must be in iXBRL format using approved software.

• Audit exemption statement: Companies claiming audit exemption must provide a strengthened eligibility statement.

• One complete filing: All components of the accounts, such as the balance sheet, P&L account, and related statements, must be filed together, eliminating staggered submissions.

• Restrictions on changing year ends: Secondary legislation will reduce the number of times a company can shorten its accounting reference period.

• Digital-first approach: These measures modernise reporting, making UK company data more usable, comparable, and secure.

4. Preparing for the transition 

Businesses will have 21 months (one full accounting cycle plus nine months) before the rules bite. That may sound distant, but the changes affect systems, people, and processes, so preparation should begin sooner rather than later.

Here’s what to consider now:

• Accounting software: Confirm your current systems can handle iXBRL submissions. If you use a manual or hybrid approach, this is the time to upgrade.

• Internal reporting: With abridged accounts ending, ensure your management accounts are robust enough to support full statutory filings.

• Data accuracy: The emphasis on reliability means errors or inconsistencies could have serious consequences. Good record-keeping is more important than ever.

• Confidentiality strategy: Decide whether publishing your P&L account serves your commercial interests or whether you will opt out.

A phased approach with professional guidance will ensure compliance without last-minute stress.

5. Top tips for small businesses

• Review your current year-end process and ensure you can meet the new reporting requirements.

• Adopt or upgrade to software that supports iXBRL-formatted accounts well before April 2028.

• Strengthen your bookkeeping to ensure your profit and loss data is accurate, timely, and ready for submission.

• Start internal discussions on whether to publish your P&L account or opt out for privacy reasons.

• Communicate changes to stakeholders, directors, shareholders, and advisers, so everyone is aligned on the new compliance landscape.

6. How Halliday Styan Chartered Accountants can help

At Halliday Styan, we understand that compliance reforms often feel daunting, particularly for owner-managed businesses and SMEs already juggling growth with day-to-day operations. Our experienced team can help you prepare for these changes in an efficient and practical way.

We can:

• Review your current accounting systems and recommend cost-effective solutions for digital filing.

• Provide timely management accounts so your year-end figures are accurate and compliant.

• Advise on whether publishing your P&L account is right for your business and manage the filing process on your behalf.

• Ensure your audit exemption and eligibility statements meet the new strengthened standards. 

With all UK companies moving to fully digital reporting, working with a trusted adviser gives you peace of mind that you are ahead of regulatory change, not scrambling at the deadline.

If you would like to discuss how these reforms affect your business and how best to prepare, please contact our team. We are here to make compliance straightforward, leaving you free to focus on running and growing your business.