The government has recently reaffirmed that small and micro companies will be required to file a profit and loss statement (P&L) along with their annual accounts.
At present small and micro businesses are not required to submit their P&L statements alongside their annual accounts. This will change from 2028 onwards, which may seem a long way off but there may be some changes that you need to undertake in your business reporting to get ready for the change.
Before we delve into the upcoming changes, a brief overview of a P&L statement might be a good idea. In simple terms, your P&L report shows a summary of your business’s income and expenses over a specific period. Essentially your P&L statement shows if you have made a profit or not.
Under the Economic Crime and Corporate Transparency Act 2023 (ECCT Act2023) the following changes will be taking place from 2028.
- Small and micro companies will be required to file a P&L statement alongside their accounts to Companies House.
- All companies will be required to file their annual accounts through commercial software, rather than through the Companies House portal.
- It will remove the option for companies to file abridged accounts.
- A strengthened statement will be required for all companies claiming an audit exemption.
- A requirement for all component parts of the filed accounts and reports to be filed together.
- It will reduce the number of times a company can shorten its accounting reference period, i.e. the number of times a company can shorten its year end.
If you would like more information on the upcoming changes, or assistance in filing your accounts under the new rules please get in touch with us.
