Small companies and micro entities will be required to file profit and loss accounts with Companies House from 1 April 2028, but will be able to opt out of publishing this information to the public register.
The changes have been made as part of the ongoing reforms made to meet the needs of the Economic Crime and Corporate Transparency Act 2023 (ECCTA 2023).
What’s changing?
From 1 April 2028, small companies and micro-entities will find that the current system of abridged accounts will be abolished.
Profit and loss accounts will be required, and the filing will be through commercial software.
However, there will be no need for these companies to file a directors’ report.
Why?
The ECCTA 2023 changes aim to make business reporting:
> become more transparent, more accurate, and consequently more reliable,
> closer to the standards of other countries,
> help with combatting economic crime.
The benefit for companies is that the new depth and breadth of financial reporting will also help them with business decisions.
Timing
The new requirements come into effect from April 2028, rather than the April 2027 that was originally planned. Therefore all companies will have one full accounting year, plus nine months from now (21 months) to get ready.
Further information
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