Small Business Regulatory Taskforce: government response

The government accepted all but one of the Small Business Regulatory Taskforce’s 15 recommendations in a response published on 23 October 2026. The biggest change for company clients is a pause on profit and loss filing at Companies House, which was due from April 2028. The one rejected idea was dropping the confirmation statement for dormant companies.

What is the Small Business Regulatory Taskforce?

The taskforce was a joint government and industry group that looked for ways to cut red tape for small and medium-sized businesses. It ran from June to September 2026 and supported the government’s target of cutting the administrative cost of regulation by 25%.

It was co-chaired by Lord Leong CBE, Minister for Small Business and Enterprise, and Tina McKenzie MBE, National Chair of the Federation of Small Businesses. Members included Michelle Ovens CBE of Small Business Britain, Kate Shoesmith of the British Chambers of Commerce, Iain Wright of the ICAEW and Emma Jones CBE of Enterprise Nation. Its report made 15 recommendations across five areas.

What did the government agree to?

The government accepted 14 of the 15 recommendations. The executive summary lists these commitments:

1. Pause the Companies House profit and loss filing requirement while options to streamline filing with HMRC are explored.
2. Explore a “tell government once” service.
3. Reduce duplication in ONS business surveys and move the remaining surveys online.
4. Standardise construction procurement and reuse supplier information.
5. Improve GOV.UK guidance for businesses.
6. Create a clearer route on Business.gov.uk to report burdensome regulation.
7. Develop reusable business credentials and more personalised online services.
8. Improve timely guidance for company directors.
9. Review how the Non-Domestic Rating Information Duty is introduced.
10. Digitise and standardise licence applications.

On licensing, a pilot with Bristol City Council suggests redesigned digital processes for Temporary Event Notices can cut the burden “by up to 50%”.

Which recommendation was rejected?

The government declined the recommendation to exempt dormant and non-trading small companies from filing an annual confirmation statement. The taskforce had proposed that companies with no change to their statutory information should not have to file or pay the fee.

That means the confirmation statement fee stays at £50 online or £110 on paper. Law firm Porter Dodson summarised it on 2 November 2026: “Companies House confirmation statements, and the associated filing fee, are staying.” For the basics see annual return vs confirmation statement.

What changes for company accounts?

Small companies and micro-entities will not have to file a profit and loss account at Companies House from April 2028, for now. The requirement came from the Economic Crime and Corporate Transparency Act 2023. It is paused, not cancelled, while the government looks at sharing data between Companies House and HMRC.

Other April 2028 changes, including software-only iXBRL filing, still go ahead. Our post on Companies House pausing P&L filing covers what still changes.

How much will businesses save?

The government’s figures put the savings at around £800 million a year. The executive summary itself gives no figure, so these come from the Treasury announcement as reported by the ICAEW.

The tariff suspensions cover more than 250 products. They were due to end on 31 December 2026 and now run to December 2028. The ICAEW also reported that companies in wider national groups could cut reporting costs by up to £20,000 a year.

The savings count towards the 25% target. See our post on the 25% admin burden cut.

What about business rates and directors?

Two recommendations affect clients directly.

Business rates information duty. The taskforce asked for the Valuation Office to pre-fill forms with data it already holds, so ratepayers only confirm or correct it. The government will review how the duty is brought in. Our post on the business rates duty to notify sets out the current timetable.

Directors’ guidance. The taskforce asked the government, HMRC, Companies House and the Insolvency Service to co-design better guidance for directors, possibly with a personalised compliance checklist. See our guide to directors’ responsibilities.

How did business groups react?

Reaction was broadly positive, with calls to deliver, according to SME Web. FSB National Chair Tina McKenzie called the P&L pause “a huge step in the right direction”. The ICAEW’s Iain Wright said ICAEW feedback had shaped the report, “particularly on the ‘tell government once’ principle”.

The British Chambers of Commerce was more cautious. Kate Shoesmith warned that “Government cannot cut red tape with one hand and add new business costs with the other.”

What advisers should do

The response changes little this year, but it affects planning for 2028.

1. Tell small company clients about the P&L pause. Clients worried about publishing profit figures can keep filleting their accounts for now.
2. Keep filing confirmation statements. Dormant companies still need to file one every year and pay the fee.
3. Prepare for iXBRL software filing. This still starts in April 2028.
4. Watch for detail on “tell government once”. No timetable has been published.
5. Use the new reporting route. When Business.gov.uk opens its route for reporting burdensome rules, send in client examples.

Frequently asked questions

Has the government accepted the Small Business Regulatory Taskforce recommendations?

Yes, all but one. The response of 23 October 2026 accepted 14 of the 15 recommendations.

Is profit and loss filing at Companies House cancelled?

It is paused, not cancelled. Small companies and micro-entities will not have to file a profit and loss account from April 2028 while the government explores sharing data with HMRC.

Do dormant companies still need to file a confirmation statement?

Yes. The government rejected the proposal to exempt them, so dormant companies must still file every year and pay the £50 online fee.

How much will the red tape changes save businesses?

The Treasury estimates around £800 million a year, including more than £600 million of admin savings for SMEs and about £155 million from extending import tariff suspensions.

What does “tell government once” mean?

It means businesses would give information to government once, with departments such as HMRC and Companies House sharing it. The government will explore a service but has not set a date.