New Transparency Rules for Small UK Companies

There is an important change coming that will affect all UK limited companies, and you should be aware of it well in advance. 

If you are a small company director and you are used to keeping the details of your accounts private, it is time to take note. A new requirement will soon make parts of your financial performance publicly available, marking a significant shift in corporate transparency.

From 1 April 2027, small companies will be required to file their profit and loss account with Companies House, making it publicly available for the first time.

What is changing?

Currently, most small businesses only submit a balance sheet, which shows the assets and liabilities of the company, but not how the business is performing on a day-to-day basis.

From April 2027, you will also need to include a profit and loss account, showing:

• Your turnover (total sales)
• Your cost of sales and expenses
• Your profit or loss

This information will be viewable by everyone, including clients, competitors, and suppliers.

What details will be shown?

The government has stated that the format is likely to be abbreviated, so you may not need to provide a full breakdown of costs (e.g., individual spending on advertising or wages); however, the headline figures will be included.

What is not changing?

If you are a small company, you still will not need to file a directors’ or an auditor’s report, so the overall admin burden stays fairly light; however, the amount of visible financial information will increase.

Why is this happening?

It is part of a wider government push to improve corporate transparency and reduce the misuse of limited company structures. It is also a reminder to make sure your bookkeeping is accurate and up to date.

What do you think?

This is a big shift for small businesses.  Do you think more transparency is a good thing, or are you concerned about competitors having access to your figures?

We would love to hear your thoughts, and if you would like help getting your accounts in shape ahead of 2027, we can support you every step of the way.