A significant shift in corporate reporting requirements is happening – and it could have major implications for your business.
Small companies will soon be required to file full profit and loss accounts, with key financial information made publicly accessible via Companies House.
This marks a dramatic departure from the current system, which allows small businesses to submit filleted accounts — omitting turnover and profit figures — to preserve commercial confidentiality.
Once implemented, small companies will be legally required to disclose:
• Turnover (Revenue)
• Gross Profit and Net Profit
• Directors’ Salaries, Pensions, and Benefits
• Dividends (which can now be inferred from the accounts)
• Total Staff Wage Costs
This data will be publicly visible to anyone — including suppliers, customers, competitors, staff, and even family members — as part of the official company record.
For many small business owners, this change could have wide-ranging implications:
• Competitive risk — Rivals will be able to see your turnover, profit margins, and growth.
• Internal challenges — Staff may access directors’ remuneration and dividend information.
• Reputational concerns — Personal financial exposure could affect professional relationships or security.
• Negotiation impact — Suppliers and partners may adjust terms based on visible performance.
While these changes are being positioned as part of wider anti-fraud and transparency reforms, they represent a real shift in how private businesses operate.
And while micro-entities (very small companies) may retain some exemptions for now, pressure for full transparency is increasing. It’s likely that all companies will eventually be required to publish this level of detail.
Have these changes already impacted how you’re thinking about your accounts or business strategy?
Are you concerned about the implications for your company’s privacy, competitiveness, or internal dynamics?
Please get in touch to share your thoughts — your feedback will help us represent the interests of members as part of wider conversations with decision-makers.
Email us at nickh@lancschamber.co.uk
As always, we’ll continue to monitor these developments and provide support and guidance as the legislation progresses.
