Your Profit and Loss Could Be Public From April 2027 – What You Need to Know

For many small business owners, the idea that your financial performance could be published for the world to see is both unexpected and unwelcome.

But under upcoming changes introduced by the Economic Crime and Corporate Transparency Act (ECCTA), this is exactly what’s set to happen. From 1 April 2027, small and micro companies in the UK will be required to include their profit and loss (P&L) account when filing accounts at Companies House – meaning your financial results will no longer remain private.

And yes, this change does include even the smallest businesses, including micro-entities.

What’s Changing – and When?

Currently, micro and small companies are able to file abbreviated or filleted accounts, which exclude detailed financials such as the profit and loss. However, ECCTA introduces new filing requirements, aiming to increase corporate transparency and tackle economic crime.

From 1 April 2027, any accounts filed from that date onwards – regardless of when your accounting period ends – will need to include your full profit and loss account.

Key definitions:

• Micro-entity: Any business meeting two of the following three criteria:

  • Turnover of £1 million or less

  • Balance sheet total of £500,000 or less

  • 10 or fewer employees

• Small company: Any business meeting two of the following three:

  • Turnover of £15 million or less

  • Balance sheet total of £7.5 million or less

  • 50 or fewer employees

If your business fits either of these categories, you will be affected.

There has been some speculation that the government may reconsider these requirements, particularly for micro-entities. However, nothing has been confirmed, and with the rules now legislated, we recommend preparing on the basis that these changes will come into force as planned.

Why the Change?

The government already receives full financial information via your Corporation Tax submissions to HMRC – so this isn’t about access. Rather, it’s about transparency, and making it easier to detect and prevent economic crime.

While the goal may be well-intentioned, there’s concern that the real burden of this change will fall disproportionately on smaller businesses, who may face increased scrutiny, commercial sensitivity risks, and reputational pressures as a result.

What Does This Mean for Your Business?

Publishing your Profit & Loss can have several knock-on effects:

• Client dependency becomes visible – If your turnover is heavily reliant on one or two large clients, by publishing your Profit and Loss this could now be clear to competitors or even those clients themselves.

• Financial difficulties are exposed – Suppliers, customers, or potential employees may be influenced by your results, even if a tough year doesn’t reflect the bigger picture.

• Strong profits attract attention – If your business is doing particularly well, you could see competitors undercutting you or targeting your clients.

For many businesses, especially those operating in competitive or niche sectors, this level of transparency introduces commercial vulnerabilities that have not previously existed.

How to Prepare

With the new rules on the horizon, now is the time to take action. Here are five practical steps you can take:

1. Understand your status
   Are you classed as a micro-entity or a small company under the new thresholds (applicable from April 2025)? This will determine your obligations.

2. Plan your filing dates
   If your financial year ends in early 2027, consider submitting your accounts before 1 April 2027 to avoid triggering the new requirements a year earlier than necessary.

3. Review your disclosures
   Consider how your Profit and Loss might be interpreted by external readers. Could it affect client confidence, supplier relationships, or competitive positioning?

4. Clean up and clarify your numbers
   If you’ve had an irregular year or one-off events affecting your results, think about how you might communicate that story if asked.

5. Speak with your accountant
   Don’t go it alone. These changes aren’t just about ticking a compliance box – they have the potential to impact your business strategy, negotiations, and future planning.

We’re Here to Help

This is a significant shift for UK businesses, especially those used to working under the radar. While greater transparency may help some causes, the reality is that these changes introduce new complexities for small and micro-entities.

At IN Accountancy, we’re closely monitoring developments and will keep you informed of any updates – particularly if there’s a change in stance for micro-entities.

In the meantime, if you’re unsure how these changes affect you or would like tailored support to help you prepare, get in touch. We’re here to help you stay compliant and commercially confident.

To see the most up to date information on the GOV.UK website on the situation currently, click here.

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