Changes to small company accounts filing delayed

The government previously said that from 1 April 2027:

• Small and micro companies would need to file their full accounts at Companies House
• Accounts would need to be filed through third party software

As at 13 May, these proposals are still under review. We will still get at least 21 months’ notice of any new requirements.

Current small company filing rules and the reasons for proposed (now delayed) changes

Currently, most small and micro companies file ‘filleted accounts’, which contain the balance sheet and related notes only. The directors’ report, profit and loss (P&L) account, and P&L notes all stay private.

In 2023, the Economic Crime and Corporate Transparency Act said this would need to end, with full accounts sent in to Companies House. That is still the law, but it could change, or a compromise could be found for the smallest companies where full accounts are sent in – but only filleted accounts are made public. We are told a final decision will be announced ‘shortly’.

There is a trade-off here between corporate transparency (good for law enforcement, credit agencies and companies evaluating their customers and suppliers) and the privacy of small business owners.

However, more information will still be disclosed for small companies

Whatever the government decides, small company accounts will get longer and disclose more information.

Small company accounts follow section 1A of FRS 102 and this recently changed for periods starting on or after 1 January 2026 to include more compulsory disclosures. These accounts, mostly prepared and filed from 2027, will need to include disclosures on the following topics:

Full and filleted accounts:

• Dividends paid or payable
• Share-based payments (including share options)
• Significant leasing arrangements (e.g. renting a building from a property company)
• Significant judgements around going concern
• Expanded revenue accounting policy
• Deferred tax assets and liabilities, including unused tax losses/credits
• Contingent assets, contingent liabilities, provisions and financial guarantee contracts
• Related party transactions and balances, even those at arms’ length, unless with wholly owned group companies

Filleted accounts only

• Lease payments other than depreciation and interest
• Tax note, including breakdown of tax expense and reconciliation to accounting profit

Therefore, even if filleted accounts continue, they will disclose more information about transactions with their owners.

How we can help

If you would like to discuss the filing changes or new FRS 102 rules, please get in touch with your normal contact at PKF Francis Clark, or use the form below.