Companies House registers limited company information, this includes directors and business accounts, however, the Economic Crime and Corporate Transparency Bill is introducing new measures to improve the transparency of company information.
These new measures will be introduced this spring – a date is yet to be fully confirmed, but as a small business, some of these changes may be of great importance to implement. Small companies will no longer have the option to file ‘filleted’ accounts as the accounts files will need to include a profit and loss account and a director’s report.
The new regulations mean that your profit and loss account will be available to everyone, as previously this withheld information was seen as ambiguous due to providing little on the company’s financial activities. People will have access to see your Gross Profit and also any dividends issued, with any retained earnings also being visible.
Many small businesses are finding this change quite daunting, due to the white paper’s plan allowing all businesses to be under more scrutiny and any financial faults being widely available to the public.
The white paper hasn’t yet received royal assent, although it is predicted that the reforms will be put in place by the end of Spring 2023.