Small and micro companies face new filing requirements starting in 2028, reversing a previous government commitment to avoid burdening entrepreneurs. Companies House announced that all small businesses must now submit profit and loss accounts and file annual accounts using iXBRL commercial software, eliminating shortened versions previously allowed.

The Federation of Small Businesses criticized the changes as costly and complex for over one million companies. Craig Beaumont argued the reforms contradict the government's own regulatory reform efforts. Sally Baker from the Institute of Chartered Accountants acknowledged implementation costs but supported modernizing the corporate register.

The rules stem from the 2023 Economic Crime and Corporate Transparency Act, aiming to improve register integrity after years of scandals. Transparency International UK backed the measures, noting past lax filings enabled criminal exploitation. Companies House delayed implementation from 2027 to 2028 to allow preparation time.

These filing changes represent a significant policy reversal under new Business Secretary Peter Kyle. While designed to combat financial irregularities, the reforms add compliance costs for legitimate businesses. The tension between regulatory oversight and entrepreneurial freedom will likely intensify as the 2028 deadline approaches.