Companies House P&L filing for all companies – still going ahead?

From company tax years beginning in April 2026, all limited companies – including one-person consultancies and PSCs – will be required to file a full profit and loss (P&L) account with Companies House.

This forms part of the Economic Crime and Corporate Transparency Act 2023. It marks a significant shift in small company reporting and ends decades of privacy protections for directors.

Important update

Confusingly, however, just days after Companies House confirmed the changes, the business secretary, Jonathan Reynolds, is said to have shelved the plans.

This about-turn has been widely reported – firstly in the FT on 3rd July, and also in The Guardian, which reports that a government spokesman said of the reforms: “We have paused them, Jonny is worried it’s too burdensome.”

We have included the original article below.

What’s changing?

At the moment, small companies can submit abridged accounts or “fillet” their filings – removing the profit and loss and directors’ report from the public record.

This option will be removed. From 2026, all trading companies will need to submit:

• A full profit and loss account
• Directors’ names on the balance sheet
• A directors’ report (unless classed as a micro-entity)
• Accounts in iXBRL digital format

This applies to every company, regardless of size, even if you’re a sole director/shareholder with minimal turnover.

When does it take effect?

According to guidance published by Companies House in July 2025 (since removed), the new rules apply to accounting periods beginning on or after 1st April 2026.

It was expected to begin in 2027, but the timeline has been brought forward. Final implementation still depends on supporting legislation and backend readiness.

Who’s affected?

Most small company contractors will be caught by this change. It applies to:

• Micro-entities (turnover under £632,000)
• Small companies (under £10.2m turnover)
• PSC contractors and one-person consultancies
• Non-trading companies (dormant companies may still be exempt)

Unless your company is fully dormant, you’ll likely need to file a public P&L.

Why does this matter to contractors?

For many contractors, your company income reflects your personal income. From 2026, your turnover and profit could be visible to clients, agencies, competitors, and anyone else who looks.

This may affect:

• Negotiation power when quoting
• How clients perceive your rates or margins
• Your general privacy and commercial positioning

The confidentiality that made the limited company structure attractive for many is now being reduced.

Public P&L or quarterly MTD – the new trade-off for sole traders

The timing also overlaps with Making Tax Digital for Income Tax, which affects sole traders from 2026 onwards.

The self employed now face a privacy trade-off:

• Stay self-employed and submit quarterly MTD updates
• Incorporate and make your financials public

Some may decide to disincorporate to retain income privacy. Others will remain limited and accept the changes.

There’s no longer a default privacy-safe option.

What should you do now?

There’s no immediate action required, but this is worth discussing with your accountant ahead of time. You may want to:

• Check your next accounting year-end date
• Review how public disclosure could affect clients or competitors
• Make sure your software supports iXBRL filing

This is also a good time to reconsider whether incorporation still works for you long term, although for the vast majority of contractors, becoming a sole trader is simply not an option.

For non-contractors running limited companies, there may be a benefit to de-incorporating; however, for obvious reasons, this is something you should discuss with your accountant.

Final thoughts

This is the most significant change to small company filings in years – and it affects all limited company contractors, not just large firms.

Although many small limited companies will have to grin and bear this reporting change, it is something directors should be aware of.

As we mentioned in the update at the top of this piece, it appears that the requirement may be scrapped altogether, although we have yet to read written confirmation of this.