Companies House, the UK’s corporate registry, has delayed proposed changes to its filing rules that would have required smaller businesses to submit more detailed financial accounts. The rule changes, introduced under the Economic Crime and Corporate Transparency Act by the previous Conservative government, were intended to remove exemptions allowing firms with under $13 million in turnover, less than $6.5 million in assets, and fewer than 50 employees to file abbreviated or abridged accounts. These reforms were scheduled to come into effect from April 2027, mandating public disclosure of profit and loss statements in a digital format. However, Business Secretary Jonathan Reynolds has paused the implementation, citing concerns over excessive red tape. A government source stated, “We have paused them, Jonny is worried it’s too burdensome.”
The initial aim of the reform was to improve transparency and reduce the risk of fraud, as the current relaxed rules had faced criticism for enabling misconduct. Companies House had supported the changes, saying they would “be a critical step towards improving the quality of the data on the register.” However, business groups raised concerns over the cost of compliance, including the need for expensive software. A spokesperson for the Department for Business and Trade added, “This government is committed to avoiding undue burdens on businesses as part of our plan for change.”
