The government has paused a plan to make small and micro companies file a profit and loss account at Companies House from April 2028. The pause was announced on 23 October in a package to cut red tape for small firms. For now, those companies can keep their profit figures off the public record.
01What the Companies House profit and loss pause means
At the moment, a small company can choose whether to send its profit and loss account to Companies House. A micro-entity can send just a simpler balance sheet.
Under earlier plans, both would have had to file a profit and loss account from April 2028. Companies House updated its guidance on 23 October to say that requirement is paused.
A company counts as small if it meets two of these tests:
- Turnover of £15 million or less.
- £7.5 million or less on its balance sheet.
- 50 employees or fewer.
A micro-entity meets two of the same tests at turnover of £1 million or less, £500,000 or less on its balance sheet and 10 employees or fewer.
The Federation of Small Businesses called the pause "a huge step in the right direction".
02What else is in the package
According to the Treasury, the measures will save businesses almost £800 million a year in admin and tariff costs. The government also says it will:
- Make it simpler for small firms to bid for public contracts, by standardising requirements in sectors such as construction.
- Give small businesses a way to report rules that weigh on them too heavily.
- Extend tariff suspensions on more than 250 goods to December 2028.
The full detail of the admin savings is due on 28 October, Budget day.
03What it means if you apply for finance
Your full accounts still exist. Every company must still send its statutory accounts, including the profit and loss account, to its shareholders and to HMRC.
A lender will usually ask to see them, whatever is on the public record. So keep your accounts up to date and ready to send. If you are planning to borrow, a broker arranging business growth finance will ask for them early.
04What it means if you are buying a small company
Many small companies' public accounts already show no profit figure. That stays the case for now.
So a buyer needs the figures from the seller. Ask for the full accounts, recent management accounts, VAT returns and bank statements. A lender will want to see them too, as our guide to the checks a lender makes when you buy a business explains.
