Will Small Businesses Really Have to File Full Accounts? The Government Starts to Waver

2027 reporting rules abridged accounts business regulations companies house director advice economic crime act government policy profit and loss filing small business Jul 03, 2025
Ask JT Ltd
Will Small Businesses Really Have to File Full Accounts? The Government Starts to Waver
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Just days after sending out letters to hundreds of thousands of small and micro businesses, the government now says its plan to force full profit and loss reporting by April 2027 is only an ‘intention’.

Last week, Companies House confirmed that from April 2027, small and micro companies would no longer be allowed to file abridged accounts. Under the proposed new rules, they’d be required to submit detailed profit & loss accounts and balance sheets in line with FRS formats.

But now the message seems less certain.

In a recent background statement, the Department for Business & Trade said that “from that point the intention is that they will be required to provide a profit & loss statement… subject to forthcoming Regulations.”

So is this policy happening — or not?

When pressed for clarity, a spokesperson stated:

“This Government is committed to avoiding undue burdens on businesses as part of our Plan for Change.”

Which raises the question: is this really about fraud prevention, or just another layer of red tape for small firms?

What’s Behind the Change?

These proposals come under the Economic Crime and Corporate Transparency Act 2023, aimed at cracking down on fraud, shell companies, and abuse of the company register.

But under the current draft:

  • Companies with turnover under £10.2m, balance sheets under £5.1m, and fewer than 50 employees would no longer be able to file abridged accounts

  • They would instead have to submit full profit and loss accounts and balance sheets — fully visible to the public

The Financial Times reported an unnamed ally of new business secretary Jonathan Reynolds saying:

“This will not happen as long as Jonny is in place.”

Whether that’s political reassurance or off-the-record backpedalling is anyone’s guess.

More Regulation, More Confusion

If you’re running a small company, this news sits alongside:

  • The increase in employer NICs to 15%

  • Day one employment rights

  • Companies House identity verification requirements

  • The Making Tax Digital rollout to sole traders and landlords with income over £50k from April 2026

And yet, the government says its priority is growth.

Mixed messages, anyone?

Final Thoughts

Whether or not this particular measure goes ahead, the direction of travel is clear: more public disclosure, more admin, and more cost, especially for owner-managed businesses and directors who simply want to run lean, profitable operations without the glare of full disclosure.

At AskJT, I’m keeping a close eye on this one. Because if you're running a business under £10m turnover, you're not the problem. But you are the one being asked to pay the price, yet again.

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