Companies House has announced major changes to how all companies will need to file their annual accounts from 1 April 2027. These changes form part of a wider reform under the Economic Crime and Corporate Transparency Act 2023, with the goal of increasing transparency, reducing fraud, and improving the quality of data held on the register.

While implementation is still some time away, it’s important to understand what’s coming – particularly the new requirement for small and micro-entity companies to file profit and loss information.

At Bluewater, we’re fully prepared for this shift and will support all our clients through the transition.

Digital Filing

From April 2027, all companies will be required to file their annual accounts using commercial accounting software. Paper-based filings and Companies House’s web-based system for accounts will no longer be accepted.

For Bluewater clients, this isn’t a change. We’ve filed all accounts digitally since 2017, and we’re proud to be a firm that consistently stays ahead with cloud accounting and technology. Our clients can continue to rely on a process that’s efficient, secure, and compliant – with no disruption as these new rules come into force.

A Major Change: Profit and Loss Accounts Will Be Public

One of the biggest updates is that, from April 2027, all small and micro-entity companies will need to file a profit and loss account, which will be made publicly available on the Companies House register.

Current Practice

Under the current rules, most clients file abridged accounts, which allow small companies to:

• File a simplified balance sheet
• Omit the profit and loss account
• Avoid publishing sensitive figures like turnover, gross profit, or net profit
• Maintain privacy over their financial performance

This level of minimal disclosure has worked well for many of our property and construction clients, particularly where discretion is important when negotiating new projects, seeking finance, or competing in local markets.

What’s Changing from April 2027?

From that date:

• Filing a profit and loss account will become mandatory, even for small and micro-entity companies
• The level of detail required is still to be confirmed by Companies House, but we expect at minimum:
  • Turnover
  • Gross profit
  • Operating profit (and potentially net profit)
• Prior year comparatives are also likely to be required, meaning the 2026 financial year could be disclosed alongside 2027
• The abridged accounts format will be phased out

What This Means for Your Business

While the change aims to improve financial transparency and reduce misuse of limited company structures, there are practical implications for business owners:

• Your company’s headline financial figures will become public
• Clients, competitors, lenders, and suppliers will be able to see your turnover and profits
• Competitors could use this data to benchmark pricing or estimate your margins
• Suppliers may reconsider credit terms based on your results
• Clients or subcontractors might make judgments about your business stability
• Potential buyers or investors will review this data in future due diligence

For many business owners – especially those in construction and property – this represents a shift in how your business is perceived externally.

What Should You Do Now?

There’s no immediate action required. The first set of accounts affected will be for accounting periods starting on or after 1 July 2026, and due for filing from April 2027 onwards.

That said, we recommend:

• Understanding what’s changing and what will now be visible on the public record
• Planning ahead if you’ve previously relied on limited disclosures for strategic reasons
• Ensuring your bookkeeping is clean, accurate, and software-based – something we already support many of our clients with
• Speaking to us early if you have concerns about how your financials being public may impact your business

Bluewater Will Handle the Transition for You

As your accountants, we’ll make sure your accounts remain compliant and filed correctly as the new rules come into effect. We’ll also keep you updated as Companies House confirms the final disclosure requirements – particularly regarding profit and loss detail and prior year figures.

If you have any questions or want to talk through how this may affect your business specifically, please get in touch.