These changes are part of a wider effort to increase transparency and improve the quality of data held by Companies House. 

While the changes are not yet in force, and there has already been talk of delays or reversal, it’s important for business owners to stay informed. Getting ahead of these updates now will save stress down the line. 

What are the proposed changes?
From April 2027, small and micro companies will face tighter rules on financial reporting. Key updates include: 

• All accounts must be filed using approved accounting software. 
• Micro companies will be required to submit both a balance sheet and profit and loss account. 
• Small companies must file full accounts, including the directors’ report and profit and loss - abridged accounts will no longer be accepted. 

These changes are part of reforms under the Economic Crime and Corporate Transparency Act, aiming to improve accuracy and tackle fraud. 

Who does this affect? 
These changes will impact all limited companies, but particularly: 

• Micro entities, who will now have to publicly disclose their profit and loss figures. 
• Small companies, who lose the option to file abridged accounts. 
• All companies, which will need to use commercial software to submit their filings. 

Even if your business is dormant or trading on a small scale, these rules will still apply from the go-live date unless otherwise updated. 

What are the impacts? 

Whilst there are many other implications, see below our key thoughts:



• More visibility: Companies House will display more detailed financial data from small firms. 
• Software needed: Filings will no longer be accepted in paper form or via Companies House online templates. 
• Extra admin: Companies may need to gather and prepare more data, possibly requiring extra support from accountants. 
• Reduced privacy: Profit and loss information, which was previously optional for many smaller firms, will now be publicly available. 

Conclusion 
Although these reforms are not yet in place, and there are early signs that parts of the plan may be paused or reworked, it’s clear that change is coming and it won’t be simple.

Whether the rules are rolled out fully or adjusted over time, they will bring new complexity and obligations for small business owners. That’s why it’s essential to either flag this to your accountant or engage with one. They can help you understand what’s likely to change and what you need to do to stay compliant. 

Getting ahead of this could save you a great deal of time, cost and stress in future.