Will small companies have to file a profit and loss account? The £800m red tape plan explained

On 23 October 2026, five days before the Budget, HM Treasury published a package of measures to cut paperwork and import costs for businesses. The headline for small companies is a pause to the plan for them to file a profit and loss account at Companies House. Below we set out what was announced, what it means for your accounts and what it means when you apply for funding. Smart Funding Solutions is a broker, not a lender. We compare options across 300+ lenders and arrange business finance from £10,000 to £20 million.

01What did the government announce?

According to the HM Treasury announcement on GOV.UK, businesses are set to save almost £800 million a year in admin and tariff costs. The main parts are these.

• Over £600 million a year in savings on regulatory admin.
• Streamlined company reporting, saving firms up to £290 million a year.
• Less duplicated reporting for asset managers, saving £105 million a year.
• A simpler home buying and selling process, saving businesses in the chain £116 million a year.
• Import tariff suspensions worth up to £155 million a year. Tariff-free imports on over 250 products, due to end on 31 December, are extended to December 2028, and suspensions due to end in June 2027 run on to December 2027.

The Chancellor, John Healey, said that “British firms are fed up with form-filling and pointless paperwork that eats into valuable time and money”. The government says the package supports its aim to cut the admin burden of regulation on businesses by 25% by the end of this Parliament. Full detail of the individual measures is due on GOV.UK on 28 October, alongside the Budget.

02Do small companies still have to file a profit and loss account?

Not from April 2028, as things stand. Under reforms in the Economic Crime and Corporate Transparency Act 2023, small companies and micro-entities were due to file a profit and loss account with Companies House for the first time. As ACCA reported in June, the start date had already moved from April 2027 to April 2028, and companies would have been able to opt out of having those accounts published on the public register.

The government now says it will pause that profit and loss filing requirement for April 2028. The Federation of Small Businesses welcomed the pause, saying it avoids a major new compliance burden on the businesses with the fewest resources to handle it. The announcement does not set out what happens to the other accounts changes in the same reforms, such as the planned end of abridged accounts, so check Companies House guidance and your accountant before your next filing.

03What else is in it for small businesses?

The announcement lists several smaller changes aimed at small firms.

• Simpler bids for public contracts, with standard requirements in sectors such as construction.
• Fewer data requests from streamlined Office for National Statistics business surveys.
• Easier ways to find support and guidance on GOV.UK, and a way to report regulation that feels out of proportion.
• Progress on a “Tell Us Once” approach, so businesses give the same information to government less often.
• Clearer compliance guidance written with small businesses in mind.

Importers of chemicals, plastics, hydrogen, automotive parts, and food and drink are among the sectors the government says benefit from the tariff suspensions. If you import goods, check the codes you use against the UK trade tariff. Manufacturers can read more on our manufacturing finance page, and builders on our construction finance page.

04Does this change what lenders ask for?

Not directly. Most lenders already ask you for your full accounts, recent management accounts and bank statements, rather than relying on the short accounts many small companies file at Companies House. Those filed accounts often show only a balance sheet, so a lender will ask you for the profit and loss figures directly.

That means the pause changes what the public can see about your business, not what you need to show a lender. Keeping your management accounts up to date is still one of the best ways to speed up an application. Our guides to the documents lenders ask for and cash flow forecasts show what helps. If your figures are tight, our page on bad credit business loans explains which lenders look beyond the headline numbers.

05What does it mean for your funding?

Less form-filling frees up time, but it does not lower your running costs. Bigger savings, or bigger bills, may come on 28 October. Our pre-Budget checklist for business owners covers what has been reported on business rates and tax, with every rumour labelled as such.

If you need working capital, funding for equipment or a business loan to grow, you can see what lenders could offer before the Budget. Get your Instant Quotes to see your lender matches instantly, with no credit check. Lenders make every decision, and all finance is subject to status.