Profit and Loss Accounts Will Be Mandatory from April 2028: What Construction Companies Need to Know

The Government has confirmed significant changes to Companies House filing requirements that will affect every UK limited company, including thousands of small construction companies, contractors and subcontractors.

From April 2028, all companies will be required to file a Profit and Loss (P&L) account with Companies House. However, following consultation with business groups, small companies and micro-entities will be able to choose whether that information is published on the public register.

For many construction businesses, this is welcome news. While Companies House and HMRC will still receive the information, commercially sensitive financial data does not necessarily have to be visible to competitors.

What Is Changing?

The reforms form part of the Economic Crime and Corporate Transparency Act (ECCTA), designed to improve transparency, modernise company reporting and reduce fraud.

From April 2028:

• All companies must file a Profit and Loss account.

• Small companies and micro-entities can opt out of making that Profit and Loss account publicly available.

• All company accounts must be submitted using commercial accounting software.

• Paper filing and Companies House web-based accounts filing will end.

• Abridged accounts will no longer be available.

• Companies claiming audit exemption will face stronger eligibility requirements.

What Does This Mean for Construction Companies?

Construction businesses often operate on tight cash flow despite healthy turnover.

Project timings, retentions, applications for payment, subcontractor costs and fluctuating material prices can all cause profits to vary significantly throughout the year.

Although your Profit and Loss account may remain private if you opt out of publication, Companies House and HMRC will still receive the information. This places even greater importance on accurate bookkeeping and construction accounting records.

If your accounts contain errors, inconsistencies or unsupported figures, they may attract unnecessary questions from HMRC.

Why Accurate Construction Accounting Matters

Many construction businesses still prepare accounts from incomplete bookkeeping records or spreadsheets.

As reporting requirements become more digital, maintaining accurate financial records throughout the year becomes increasingly important.

Good construction accounting helps you:

• Produce accurate company accounts

• Monitor project profitability

• Manage CIS deductions correctly

• Prepare VAT returns accurately

• Improve cash flow forecasting

• Support funding applications

• Reduce year-end adjustments

For growing contractors, good bookkeeping is no longer simply about compliance. It becomes an important management tool for running the business.

Will My Profit and Loss Account Be Public?

No—not necessarily.

Following feedback from businesses and professional bodies, the Government confirmed that small companies and micro-entities will be able to choose not to publish their Profit and Loss account on the Companies House register.

The information will still be filed with Companies House and available to HMRC and relevant authorities, but it does not have to be visible to the general public. Further guidance on how this option will operate is expected before implementation.

How Construction Businesses Should Prepare

Although the changes do not take effect until April 2028, there is plenty construction companies can do now.

1. Review your bookkeeping processes.

2. Move to cloud accounting software if you have not already.

3. Ensure CIS, VAT and payroll records are accurate.

4. Keep supporting documentation for income and project costs.

5. Work with a construction accountant who understands the industry's unique reporting requirements.

Preparing early will make the transition much smoother when the new rules come into force.

How Vau Consult Can Help

At Vau Consult, we specialise in construction accounting for contractors, subcontractors and growing construction companies across the UK.

Our services include:

• Construction bookkeeping

• Company accounts

• CIS administration

• VAT returns

• Payroll

• Management reporting

• Cash flow forecasting

Whether you are preparing for the Companies House reforms or simply want clearer financial information to help grow your business, we can help you stay compliant while improving the financial performance of your construction business.

Final Thoughts

The Companies House reforms represent one of the biggest changes to company accounts filing in recent years.

While the ability to keep Profit and Loss accounts private is good news for small businesses, the new rules also increase the importance of accurate bookkeeping, digital accounting systems and reliable financial reporting.

For construction companies, having a specialist contractor accountant who understands CIS, project accounting and construction finance will be more valuable than ever.