If you run a UK small company or micro-entity, you might have heard about some major changes to Companies House filings originally planned for 1 April 2027.
The proposals would have removed the option to file “abridged” or “filleted” accounts – so more of your business’s financial performance, including profit and loss, could be visible on the public record. Separately, from the same date, you would have been required to file your accounts with software only, and not the current free WebFiling service or by post.
However, following concerns about privacy and the burden on small businesses, the government confirmed in January 2026 that these changes are no longer going ahead on the original timeline. The reforms are paused and under review, with no replacement date.
Read on to understand what was proposed, why the plans were paused, and what to keep an eye on going forward.
Under the current rules, small companies and micro-entities can file simplified annual accounts with Companies House. This means they don’t have to include a profit and loss statement or a directors’ report in what appears on the public register.
This is done through what’s known as “abridged” or “filleted” accounts. Abridged accounts use a simplified balance sheet and profit and loss structure. Filleted accounts are full accounts with the profit and loss statement and directors’ report removed before filing. Both options allow small companies to keep sensitive financial information – like turnover, gross profit, and directors’ remuneration – off the public record .
In practice, most small companies prepare full accounts internally (and for their shareholders) but file a reduced version publicly. Accounts can be submitted through Companies House’s WebFiling service, on paper, or through commercial software.
Under the ECCTA , small companies and micro-entities were due to file full profit and loss accounts with Companies House from April 2027, ending the option to file abridged or filleted accounts. A move to software-only filing was also planned for the same date, ending the ability to use the current WebFiling service.
In January 2026, Companies House updated its guidance to state that these changes have been paused. The official guidance on GOV.UK now reads :
Changes to accounts filing will not be introduced in April 2027. The reforms are still under review and a final decision will be announced shortly. Companies will receive at least 21 months’ notice to prepare.
This followed months of growing uncertainty. According to the Financial Times, The Guardian, and other UK newspapers in mid-2025, Business Secretary Jonathan Reynolds initially put the plans on hold due to the cost and extra admin they’d create for small businesses. In November 2025, according to The Times, Small Business Minister Blair McDougall said the issue was still being weighed up, with “all options on the table”. But it was only in late January 2026 that the government officially shelved the plans.
The reforms remain under review , with a final decision expected to be announced shortly. For now, there is no replacement date and no action required. If the reforms are resumed, you’ll have 21 months’ notice to prepare.
Two separate changes were originally planned for 1 April 2027 that would have affected how companies file their accounts with Companies House. Both have now been paused. However, as they could still be implemented in the future, it’s still worthwhile understanding what they are:
The option to prepare and file “abridged” accounts would have ended entirely. Abridged accounts currently allow small companies to file simplified balance sheets without including a profit and loss statement or directors’ report.
The proposals would also have ended “filleted” accounts for small companies. Filleted accounts are where a small company files full statutory accounts, but removes the profit and loss account and directors’ report from the version that appears on the public register.
Under the proposals, micro-entities would also have had to file a profit and loss account on the public register (but they still would not have been required to file a directors’ report).
In both cases, you can currently keep sensitive financial information off the public record . Under the proposals, privacy protection would no longer exist, meaning anyone could have looked up that information.
Under the paused changes, Companies House and HMRC also indicated that software-only filing for all accounts would have come into effect from 1 April 2027. This would have meant:
This was part of the government’s aim to digitise the tax and filing systems, creating a more efficient, secure filing process. It’s paused alongside the proposed changes to transparency rules. It may be cancelled altogether or could still go ahead in some form at a later date.
Under the paused plans, your filed accounts could have included significantly more financial detail than what’s currently required. The exact impact would have depended on your company’s size and how you currently file. For small companies, the following would have become publicly visible:
Micro-entities, which can currently file a simplified balance sheet with very limited notes, would also have had to file a profit and loss account. However, they would have continued to have the option of not preparing or filing a directors’ report.
In both cases, financial information that many business owners currently keep off the public register would have become freely available to competitors, suppliers, and customers.
The changes would have affected small limited companies and micro-entities that can currently keep their profit and loss figures private. It would have affected:
Even if you’re a sole director-shareholder limited company with minimal turnover, you would have needed to file a profit and loss account to Companies House, effectively revealing your personal income.
Under the proposals, anyone would have been able to search and view your accounts. This would include:
Business groups were primarily concerned about the added administrative burden on small businesses. However, there were several other potential impacts:
Current penalties for late filing requirements remain in force:
Directors can be prosecuted for failing to file accounts. In more serious or repeated cases, courts can impose fines and may consider director disqualification.
If a company repeatedly fails to file its accounts, Companies House can begin strike-off proceedings . This removes the company from the register and transfers its remaining assets to the Crown.
With the reforms officially paused and no replacement date in place, stay informed without taking any premature action. There is a clear direction of travel given Making Tax Digital (MTD) and other changes under the ECCTA, so it’s too early to assume the proposals will be totally scrapped.
The government has committed to giving at least 21 months’ notice before introducing any new accounts filing requirements. Monitor updates from GOV.UK and Companies House.
The existing reporting and filing rules remain unchanged. Keep filing your annual accounts and confirmation statement on time and to the same standard.
The proposed changes to small company accounts have been paused, so current filing rules remain in place for now. That means small companies can still file abridged accounts, and micro-entities can continue using the micro-entity framework.
It’s worth keeping an eye on future announcements, but there’s no need to change how you prepare or file your accounts today. If the government does announce a new timeline, the 21-month notice commitment means you’ll have plenty of time to prepare.
If you want help staying on top of your compliance responsibilities, Rapid Formations offers comprehensive services covering company formation, registered office addresses , and ongoing company secretarial support to keep your business on track.
Not under the current rules. The requirement for small companies and micro-entities to file profit and loss accounts to Companies House was paused in January 2026. The reforms are under review, and businesses will receive at least 21 months’ notice before any new filing requirements are introduced. For now, the existing options – including “abridged” and “filleted” accounts – remain available.
Yes. Abridged and filleted filing options remain available under the current rules and until further notice. The proposed changes to small company accounts that would have ended these options are not going ahead on the original April 2027 timeline.
Under the current rules, some companies can file using Companies House’s WebFiling service, while others use accounts production software (or an accountant) to prepare and submit accounts. The proposed move to software-only filing has been paused alongside the other reforms, so web filing remains available for the time being.
Under the original proposals, dormant companies would have needed to include an enhanced statement specifying that they are claiming dormant company audit exemption and confirming eligibility. With the reforms paused, the current requirements for dormant companies remain unchanged.
“Abridged” accounts are a simplified format with a reduced balance sheet and profit and loss structure. “Filleted” accounts are full accounts with the profit and loss statement and directors’ report removed before filing with Companies House. Small companies can also file “filleted abridged” accounts – abridged accounts with the P&L removed before filing. All three options remain available under the current rules.
If the reforms were to proceed in future, lenders and credit reference agencies would be able to use publicly available financial information to assess creditworthiness. Strong turnover, healthy profit margins, and consistent growth could potentially improve credit terms. However, weak financial performance would also become visible, which may affect lending terms or supplier credit. The impact would depend on your specific financial position and the industries you operate in.
The government has not announced a specific timeline for its final decision. As of January 2026, the reforms are described as “under review”, and a decision is expected “shortly”. Businesses will receive at least 21 months’ notice before any new requirements are introduced.