Profit and loss accounts set for public filing at Companies House from 2028 — what it means for your contractor business

From April 2028, Companies House will undergo its most significant transformation in decades.

And contractors operating through their own limited company, also known as a personal service company (PSC), will feel the effects of the transformative changes, writes Carl Bridges, operations director at Caroola Accountancy.

What’s the key new filing requirement for Companies House?

The most significant of the Companies House changes for contractor businesses is the requirement to publicly file Profit and Loss (P&L) accounts. But all small companies and micro-entities will be able to opt out of this public filing requirement.

Key Takeaways

• Details of the ‘public filing P&L opt-out’ with Companies House (CH) will be embraced by contractor businesses, but they are not yet available
• There’s no opt-out from the direction of travel of the changes, as tax and CH officials will gain access to your P&L, so beware of inconsistencies
• Inline eXtensible Business Reporting Language (iXBRL) will be required of all small firms, regardless of whether an accountant files the accounts
• The current option to file abridged accounts with CH will be removed, as will the ability to file component parts of the accounts later on
• Reducing how often a PSC can cut its accounting period underlines this tighter reporting environment, which there is just 21 months to prep for.

When do these Companies House changes apply from?

It’s very welcome that the timeline for full implementation of the Companies House changes, which are part of the Economic Crime and Corporate Transparency Act 2023 (ECCTA), has been extended.

In fact, ministers initially wanted these UK company register reforms to apply from 2027. But the extension to April 2028 is something that small business minister Blair McDougall acknowledged when the ECCTA changes were green-lighted.

This green-lighting of the Companies House reforms, which were mooted in 2022, happened in the House of Commons on June 9th 2026.

You can read the minister’s statement here.

What is the P&L opt-out from Companies House?

The second welcome development is that while mandatory public filing of ‘Profit and Loss accounts’ for small companies and “micro-entities” on Companies House will go ahead, it will come with an opt-out.

Despite this two-fold reprieve (both the delay and the opt-out are new), the direction of travel is clear. It means more scrutiny, greater transparency and tighter alignment between Companies House and HMRC.

If a company opts out of public P&L filing can that restrict access?

Indeed, even where a ‘P&L public filing opt-out’ is in future activated, contractor businesses were warned by McDougall that Companies House, law enforcement and HMRC, will “still have access [to P&L accounts] to identify and tackle fraud, economic crime and tax evasion.”

Therefore, for contractors who are limited company directors, the April 2028 commencement of these Companies House changes shouldn’t be on the compliance ‘To-Do’ list.

Instead, the changes are a signal to start adapting now.

What will the Companies House changes achieve?

The ECCTA reforms mark a fundamental shift in the role of Companies House from a largely passive registry into a more active gatekeeper of corporate data.

The aim of the 2028 changes to the UK company register is fourfold, notably to:

1. improve the quality and reliability of financial information
2. support better decision-making
3. align the UK with international standards, and
4. reduce the risk of misuse of company structures.

For limited company/PSC contractors, those aims translate into operating in a more structured and increasingly scrutinised reporting environment, where consistency and accuracy matter more than ever.

Companies House Reforms 2028 Explained: Six key changes

Six of the Companies House changes will directly impact how contractor businesses prepare and file their accounts from 2028:

1. Mandatory Profit & Loss Filing

Historically, most PSCs have submitted ‘filleted’ accounts to Companies House.

The effect of this is that only the company’s balance sheet appears on the public record, whereas Profit and Loss (P&L) data remains private — with HMRC.

But for the first time, P&L accounts must also be filed with Companies House from 2028.

While the level of public disclosure is still being finalised, and crucially, there will be the option for directors to remove the P&L data from the public record (the ‘opt-out’), Companies House and HMRC will still have access to the data.

UPSHOT: The ‘financial story’ of your contractor business, presented to both bodies, will align far more closely, leaving little room for inconsistency.

2. iXBRL to become compulsory

All companies will be required to file accounts using commercial software in iXBRL format.

Paper and web-based accounts filing routes will be withdrawn.

For contractor businesses still using spreadsheets or manual processes, mandating the iXBRL format represents a significant operational change.

UPSHOT: Filing will become more structured, software-led and data-driven, but with far less tolerance from officialdom for inconsistencies.

3. Removal of abridged accounts

The option to file abridged accounts will be eliminated, driving more standardised reporting across companies.

As a result, contractor businesses will have fewer opportunities to simplify disclosures.

From the government’s standpoint, removing the option for companies to file abridged accounts reinforces a consistent approach to how financial information is prepared and presented.

UPSHOT: The enhanced privacy that abridged accounts afford is on the way out, which may concern some small firms sensitive about assets or liabilities.

4. Stronger audit exemption declarations

Although most PSCs will still qualify for audit exemption, supporting declarations will need to be more robust and clearly evidenced.

The government said that a “strengthened eligibility statement for all companies claiming an audit exemption” will be required by 2028.

UPSHOT: Contractor-directors will be under greater responsibility to ensure exemption criteria are properly assessed and documented, rather than assumed.

5. Full accounts filed as a single package

The distinction between full accounts submitted to HMRC and reduced versions filed at Companies House will narrow, with accounts submitted as a complete, structured package via software.

This increases alignment between submissions and makes discrepancies between what each body receives more visible and harder to justify.

UPSHOT: ‘All together filing’ will go down well with us accountants, but it means contractor businesses can’t be late with component parts of the accounts.

6. Limits on accounting period changes

Contractors have previously had the flexibility to shorten accounting periods, often for timing or tax planning reasons.

Although the precise limits are still being finalised, the overall direction is toward reducing the ability to repeatedly adjust reporting timelines.

This move towards less room to adjust reporting deadlines will encourage greater consistency in financial reporting periods.

UPSHOT: Cutting the number of times that a PSC can shorten its Accounting Reference Period will likely be criticised as tightening the tax planning landscape.

What the Companies House changes mean for contractor businesses

Taken together, these changes to financial reporting as a small company create a more disciplined compliance environment.

For PSC contractors, the implications are clear:

• Greater scrutiny: filings are more likely to be challenged by officials if inconsistencies arise
• Closer alignment: differences between Companies House and HMRC data become more visible
• Reduced flexibility: fewer options to simplify reporting or adjust timing
• More structured processes: compliance becomes ongoing rather than annual.

For contractor businesses, this tightening financial reporting environment means the margin for error is narrowing, and inconsistencies between filings are increasingly likely to attract attention.

How long to prepare for Companies House changes?

With implementation set for April 2028, contractors have around 21 months to prepare.

The key is to use that time to improve processes, not just meet deadlines.

Practical steps we’d recommend that contractor businesses take, before the tighter requirements when reporting to Companies House, include these five:

1. Moving on to compliant, cloud-based accounting software
2. Keeping financial records accurate and up to date throughout the year
3. Reviewing alignment between accounts and tax filings
4. Ensuring audit exemption status is clearly supported.

Professional support from a qualified accountant can play an important role, particularly as Companies House compliance becomes more continuous rather than annual.

Ongoing oversight from such a dedicated tax professional can help identify issues early, maintain consistency, and ensure systems remain aligned as requirements continue to evolve.

The takeaway

The Companies House 2028 Reforms under ECCTA represent a clear shift toward greater transparency, structure and accountability.

While the extended timeline provides valuable preparation time, it should be used to modernise processes and improve financial accuracy. Contractors who act early will find the transition smoother and compliance more predictable.

Those directors who delay, even if they plan to opt out of public P&L filing, may find that tasks that were once routine administration become a more complex — and a higher-risk obligation.

That’s because there’s no opt-out for contractor businesses from the direction of travel of these Companies House changes.

As with most regulatory reform, preparation, not reaction, will make the difference, particularly if it’s under the guidance of a qualified accountant.