📢 Important Update for Freelancers: Government Pauses Abridged Accounts Reform

We wanted to share a quick but essential update on upcoming changes to company accounts filing that affects many freelancers and small business owners.

As you may remember, under the Economic Crime and Corporate Transparency Act, the government had planned to abolish the option to file abridged accounts by April 2027. This would have meant that even the smallest limited companies, including many one-person businesses, would be required to file full profit and loss statements with Companies House.

🔒 The goal? Greater transparency and less financial secrecy.

But in welcome news for small companies and freelancers, the government has now paused these reforms.

What’s changed?

Earlier this month, the new Business Secretary, Jonathan Reynolds, confirmed that the government is reviewing the upcoming filing reforms, and will not be moving forward with the 2027 implementation date as previously planned.

This means that:

✅ If you currently file abridged accounts (which limit the amount of detail shown publicly), you can continue to do so, for now.

✅ There is no immediate change to your filing requirements.

✅ You do not need to start preparing full profit and loss accounts for public filing just yet.

Why the pause?

The government says the decision is part of a broader effort to reduce red tape for small businesses, especially those under the £10 million turnover threshold, which includes most freelancers and micro-entities.

Officials are reassessing whether forcing small firms to publish detailed accounts strikes the right balance between transparency and administrative burden.

What should I do?

At this stage, no action is required from you. But we’ll continue to monitor the situation closely.

If you’re a freelancer operating through a limited company, we’ll keep you informed well in advance if the government reintroduces the changes, updates the timeline, or announces new requirements.

As always, if you have any questions about your accounts, tax returns, or company structure, just drop us a message.

We’re here to make sure your accounting stays simple, compliant, and stress-free.