Companies House Pauses Profit and Loss Filing for Small Firms Until at Least 2028

The UK government has paused a key transparency measure that would have required small companies and micro-entities to file profit and loss accounts with Companies House from April 2028, following recommendations from the Small Business Regulatory Taskforce.^[1] The pause affects filing requirements originally set out in the Economic Crime and Corporate Transparency Act 2023 (ECCTA 2023), while the government explores alternatives to simplify compliance obligations.

Under the revised approach, small companies and micro-entities will retain the option to file abridged accounts and continue to remove, or 'fillet', profit and loss information from accounts filed at Companies House after 1 April 2028.^[1] The government stated it will explore options for streamlining Companies House and HMRC filing processes under the 'tell Government once' ambition during this pause.

What the Pause Means for Filing Requirements

The announcement, published by Companies House on 23 October 2026, confirms that in practical terms, the government will continue to allow companies to file abridged accounts and retain the option for smaller companies to remove their profit and loss information from accounts filed at Companies House after 1 April 2028.^[1]

The accounts reforms under ECCTA 2023 were designed to improve the transparency, accuracy and reliability of data on the companies register to ensure that business can rely on robust information when making decisions, modernise practices in line with other countries, and tackle economic crime.^[1] The pause does not affect these underlying objectives, but changes the timeline and method for achieving them.

The government stated it "remains committed to delivering our economic crime objectives in a way that is in keeping with our wider ambitions to reduce business burdens and improve filing processes."^[1]

Mandatory Software Filing Still Proceeding

Despite the pause on profit and loss filing requirements, the government has reconfirmed its commitment to mandatory software filing of accounts and other planned reforms for April 2028.^[1] From April 2028, all UK registered companies will be required to file their accounts in Inline eXtensible Business Reporting Language (iXBRL) format using commercial software.

According to the Companies House announcement, software filing will improve the quality of financial data for register users and provide more opportunities over time for companies' accounts data to be aggregated, compared and analysed for use more widely.^[1] This requirement remains on schedule despite the profit and loss pause.

Small Business Regulatory Taskforce Influence

The decision to pause the profit and loss filing requirement came following recommendations from the Small Business Regulatory Taskforce.^[1] During the pause, the government will explore options for streamlining Companies House and HMRC filing processes under the 'tell Government once' ambition, which seeks to reduce duplicative reporting requirements across government agencies.

The 'tell Government once' initiative aims to allow businesses to submit information to government once, rather than filing similar or overlapping data with multiple agencies. This approach could reduce administrative burden while maintaining transparency and data quality objectives.

UK Company Register Context

The filing rule changes take place against the backdrop of a UK company register with 5,430,347 active companies as of October 2026.^[2] The most common business activities across the UK register include real estate operations, management consultancy, and e-commerce retail.

Analysis of the UK company register by sector shows that other letting and operating of own or leased real estate is the most common registered activity with 448,708 companies, followed by buying and selling of own real estate with 276,740 companies, and management consultancy activities other than financial management with 276,553 companies.^[2]

Other prominent sectors across the economy include other business support service activities (218,059 companies), retail sale via mail order houses or via Internet (210,628 companies), and information technology consultancy activities (166,903 companies).^[2] These economy-wide totals reflect the full breadth of the UK companies register rather than firms specifically affected by the accounts filing changes.

Next Steps and Timeline

The government has not specified a timeline for when the pause on profit and loss filing requirements will be reviewed or when alternative simplified filing processes might be introduced. The announcement indicates the government will explore options during the pause period, suggesting any new approach would be implemented after further consultation and development.

Directors of small companies and micro-entities should continue to monitor Companies House guidance on the mandatory software filing requirement, which remains scheduled for April 2028. The transition to iXBRL filing will require companies to use commercial accounting software rather than filing paper or PDF accounts.

The pause on profit and loss filing requirements represents a significant shift in the implementation of ECCTA 2023 transparency measures, balancing economic crime objectives against concerns about administrative burden on small businesses. How the 'tell Government once' initiative develops will determine whether future filing requirements become more or less onerous for company directors.