Government delays small company filing of Profit and Loss reports beyond 2027
Government delays small company filing of Profit and Loss reports beyond 2027
An overhaul of accounts filing rules has been dropped by the government who have confirmed that an introduction of mandatory ‘software only’ accounts filing will not go ahead in 2027.
The ‘software only’ accounts filing and the changes to ‘small company filing options’ are being delayed beyond 1 April 2027, with the government confirming ‘a final decision on the reforms will be announced shortly’.
It is not clear whether the reforms will be shelved completely, with the only confirmation from government being that ‘companies will be given a new date for any new proposals’.
The government is reviewing the proposals, but they do not appear to fit with the wider growth agenda so may well be dropped, at least for the foreseeable future.
The decision was first aired on the government’s Changes to UK company law update which stated.
‘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.’
The plan to stop the changes to accounts will include dropping the requirement for some businesses to publish balance sheets and Profit & Loss numbers in their annual reports at Companies House but no new dates are available at the moment, and sources have assumed no changes will be made for several more years.
The measures are part of the Economic Crime and Corporate Transparency Act 2023, designed to improve transparency over business ownership and reduce fraudulent use of the Companies House register.
The original plan would have seen mandatory digital filing of all accounts at Companies House, and changes to small company filing options for small and micro-entity companies, which were set to come in from 2027. This would have seen micro-entities required to file a copy of their balance sheet and profit and loss account, and small companies would have had to file a copy of balance sheet, directors’ report, auditor’s report (unless exempt) and profit and loss account. In addition, the use of abridged accounts was going to be abolished from the same date.