Companies House P&L opt-out: what micro-businesses need to know

You will still be required to file, but eligible small companies will be able to keep their profit and loss account off the public register.

There has been an important update to the planned Companies House accounts reforms and it is good news for small businesses concerned about commercial privacy.

From 1 April 2028, micro-entities and small companies will still be required to file a profit and loss account with Companies House. However, they will be able to opt out of having that profit and loss account published on the public register.
That distinction is important: it is an opt-out from public disclosure, not an opt-out from filing.

What was originally expected?
The Economic Crime and Corporate Transparency Act introduced a requirement for small companies and micro-entities to file their profit and loss accounts at Companies House.

The original direction caused understandable concern. A publicly available profit and loss account could reveal turnover, margins, wages and other commercially sensitive information to customers, suppliers and competitors.

Following consultation with business and professional groups, the government confirmed in June 2026 that eligible small companies and micro-entities will be able to keep the filed profit and loss account off the public register.

What will the opt-out mean?

If a company uses the opt-out:
1. It must still prepare and file its profit and loss account with Companies House

2. The profit and loss account will not be visible to the general public on the Companies House register

3. Companies House, HMRC and law-enforcement bodies will still be able to access the information

4. The balance sheet and other information required by the filing regime will continue to appear publicly

Companies House has not yet confirmed the detailed process for claiming the opt-out. Further regulations and guidance are expected before the reforms begin.

Does anything change now?

No immediate change is required for most micro-entities.

Under the rules currently in force, a qualifying micro-entity can normally file a reduced balance sheet and notes without placing its profit and loss account on the public register.

The new filing requirement is scheduled to apply from April 2028, rather than April 2027 as previously planned. Companies therefore have additional time to prepare.

Who qualifies as a micro-entity?
A company will normally qualify as a micro-entity if it meets at least two of the following three conditions:

Micro-entity test – Current threshold
Annual turnover: £1 million or less
Balance-sheet total: £500,000 or less
Average number of employees: 10 or fewer

There are exclusions and additional rules, so size alone does not guarantee eligibility.

The publication opt-out will also be available to qualifying small companies, not only micro-entities.

Other Companies House accounts changes
The profit and loss filing reform forms part of a wider package. From April 2028:
– Annual accounts will need to be filed through suitable commercial software using iXBRL
– Companies House web and paper accounts-filing routes will close
– The option to file abridged accounts will be removed
– Companies claiming audit exemption will need to make a strengthened eligibility statement
– The different parts of the annual accounts and reports will need to be filed together
– These changes apply even where a company chooses not to publish its profit and loss account.

Should a business publish voluntarily?
Some companies may choose to allow publication. A fuller public record could support credit applications, tenders or conversations with suppliers and investors.

For many owner-managed businesses, however, keeping detailed trading results private is likely to be preferable. The decision should be made deliberately rather than left to chance when the new filing process is introduced.

What should micro-businesses do?
There is no need to make an opt-out application yet because Companies House has not published the procedure.

For now, businesses should:
– Continue filing under the existing rules
– Maintain complete and accurate digital accounting records
– Check that their accounting software and accountant will support Companies House software filing
– Keep the company’s registered email address up to date
– Review future Companies House guidance before the April 2028 start date

Our view
The revised position is a sensible compromise. Companies House, HMRC and law enforcement will receive the fuller financial information sought by the reforms, while small businesses will be able to protect sensitive results from competitors and the wider public.

The key message is simple: micro-entities will not be able to opt out of filing a profit and loss account, but they will be able to opt out of its publication.

Coalesco Certified Accountants will monitor the detailed rules and help clients make the appropriate choice when the new filing process becomes available. If you would like to talk to us about these changes, please get in touch by visiting our website – https://coalesco.co.uk/, call us on 0115 238 3228 or email info@coalesco.co.uk. 

This article reflects the position announced by Companies House in June 2026. The implementation details may change as further legislation and guidance are issued.