Profit and loss filing is coming: what small property companies should tidy before Companies House changes
From 1 April 2028, small companies and micro-entities will have to file a profit and loss account with Companies House. All UK companies will also have to submit annual accounts through commercial software, while the option to prepare and file abridged accounts will be removed.
The reforms are particularly relevant to property investment companies, special purpose vehicles and residential management companies that currently file limited financial information. Small companies and micro-entities will be allowed to opt out of having their filed profit and loss account published on the public register. However, Companies House has not yet confirmed how the opt-out process will work.
Earlier plans targeted April 2027, but the government confirmed on 9 June 2026 that implementation would move to April 2028. Companies were therefore given 21 months to prepare.
What is changing?
The reforms arise from the Economic Crime and Corporate Transparency Act 2023 and are intended to improve the accuracy and usefulness of information held on the companies register.
| Company type | Current filing position | Position from 1 April 2028 |
|---|---|---|
| Micro-entity | Can normally file a simplified balance sheet without publishing its profit and loss account | Must file a balance sheet, profit and loss account and auditor’s report unless audit-exempt; the profit and loss account can be withheld from public publication |
| Small company | Can currently omit the profit and loss account and directors’ report and may prepare abridged accounts with members’ approval | Must file a balance sheet and profit and loss account; abridged accounts will be removed and an auditor’s report will be required unless exempt |
| Filing method | WebFiling, paper or compatible software may be available depending on the accounts | Annual accounts must be filed through commercial software in iXBRL format |
The legislation also created a requirement for small companies to file a directors’ report. However, the government separately intends to remove the requirement for companies to produce directors’ reports. Further legislation is expected, so the final position should be checked before April 2028.
Companies claiming an audit exemption will also need to provide a strengthened directors’ statement confirming which exemption is being claimed and that the company qualifies for it. A company wishing to shorten its accounting reference period more than once within five years will normally need to give Companies House a business reason.
Need Expert Accounting Advice?
If you are unsure about tax, bookkeeping, payroll, property accounts or business finances, speak to the team at FHP Accounting for clear, practical guidance.
Why property companies should prepare
Many property businesses use smaller corporate structures to keep administration proportionate. A property SPV holding one development or a company providing residential property management accounting may currently publish little more than a balance sheet and accompanying notes.
The publication opt-out should prevent turnover, rental income and profit figures from automatically appearing on the public register. It will not prevent Companies House, HMRC or law enforcement from accessing the filed profit and loss account. The protection therefore concerns public disclosure rather than confidentiality from government bodies.
What to tidy before April 2028
First, confirm whether the company qualifies as small or micro. For accounting periods beginning on or after 6 April 2025, a micro-entity must meet at least two of these limits:
- Turnover of £1 million or less
- Balance-sheet total of £500,000 or less
- An average of 10 employees or fewer
A small company must meet at least two of the following:
- Turnover of £15 million or less
- Balance-sheet total of £7.5 million or less
- An average of 50 employees or fewer
These thresholds do not automatically guarantee eligibility because some companies and groups are excluded from the simplified regimes.
Companies should also move towards compatible accounts-production software, maintain complete digital records and check that their accountant or software provider will support iXBRL filing. Companies House’s web and paper services will close for annual accounts from 1 April 2028, although WebFiling will remain available for other company information.
Well-maintained micro-entity accounts and small company accounts will make the transition easier. Keeping current records in cloud software such as Xero can improve the underlying data, although suitable accounts-production software will still be needed for Companies House filing.
Get your accounts change-ready
Our accountants in Nottingham support property companies, SPVs and residential management businesses. An outsourced finance department can maintain your records throughout the year, while our landlord accountant and accountants for start-ups services can help with existing structures or a first SPV.
For the wider financial picture, read our guide to tax planning for property investors or contact FHP Accounting to prepare for the April 2028 filing changes.
I lead FHP Accounting, an accountancy practice specialising in Commercial and Residential Property Accounting. Our goal is to make the administration of running property portfolios easier for landlords, managers, and investors — allowing you to focus on what you do best, while we take care of everything behind the scenes.
Need Expert Accounting Advice?
If you are unsure about tax, bookkeeping, payroll, property accounts or business finances, speak to the team at FHP Accounting for clear, practical guidance.
