Small companies will have to file a profit and loss account with Companies House following the passing of the Economic Crime and Corporate Transparency Act last week.

Tighter rules for small companies were approved last week. This means that small companies and micro-entities will have to file a profit and loss account and directors report in the future. The changed legislation also removes the option for companies to file stripped-down versions of the accounts.

Historically abridged accounts have been filed to limit the information available on the public record that can be seen by anyone including competitors.

The good news is that there is currently no timeframe for the changes to take effect so watch this space.