Significant changes to UK company reporting due from April 2027
From April 2027, under current government plans, all companies — including small and micro-entities — will be required to file a full profit and loss account (income statement) with Companies House. This marks a major shift from the current rules, which allow many small businesses to keep detailed profit figures private.
What does this mean for you?
- Your business’s turnover, expenses and net profit will become part of the public record.
- The option to file ‘abridged’ or ‘filleted’ accounts without a P&L will no longer exist.
- You will need to file using approved accounting software in iXBRL format — manual or paper filings won’t be accepted.
Is this definite?
The government is reviewing parts of this reform following concerns raised by small businesses — so the final position may change. However, transparency requirements are increasing, and businesses should prepare for greater disclosure as a likely outcome.
What should you do now?
- Review how this might affect your business’s confidentiality and tax planning.
- Talk to us early if you need advice on software or process changes — we’re here to help make this transition as smooth as possible.
Would this disclosure work for you — or is there another way?
For some businesses, making detailed profit figures public may not sit well with their commercial or personal circumstances. In certain cases, it may be worth reviewing whether your current trading structure is still the best fit — for example, whether operating as a sole trader or partnership might offer a better balance between privacy, tax efficiency and liability.
Please note: Changing your legal structure is a significant decision with wider tax and legal implications — it’s not right for everyone. We’re here to help you weigh up the pros and cons if you’d like to explore this option.
For more information regarding these changes and help to stay compliant, get in touch on hello@richardsonswift.co.uk or call on 01225 325580