11:33 am, June 27, 2025
Car dealers that currently post small or micro accounts will have to change how they submit their tax return, sparking concerns about competitors ‘snooping’ on profit margins.
On Wednesday, Companies House sent out a notification to businesses explaining that from April 1, 2027, changes would come into affect whereby ‘all companies will need to file their annual accounts using commercial software’ and small or micro businesses will have to begin publishing profit and loss accounts too.
The first update will affect all car dealers not currently using digital software for their accounts, but many independent dealers will also fall into the small or micro account category too.
The email explained: ‘This means we’ll be closing our web and paper-based systems for account filings on that date. Whether you file accounts yourself or through an accountant or agent, you’ll need to use software from that point forward.
‘We’re contacting you now to give you plenty of time to prepare – you’ll have one full accounting year, plus nine months, to make the switch (a total of 21 months).’
This has led to concerns about the impact this will have on small businesses both financially and the implications of publishing informations they can currently keep private online.
National chairman of the Federation of Small Businesses Martin McTague told the Times that ‘small business owners are deeply concerned at this regulatory expansion’ which will force those who don’t use reporting software to ‘shoulder the cost and upheaval of the change’ to one of the big providers.
He added: ‘Small firms will also be worried by the new mandate to report profit and loss, leaving the door wide open to their competitors to snoop on their profit margins, and for prospective big business clients in supply chains to check on their private finances.’
However, the changes are being brought in to reduce economic crime and help detect fraud.
Car dealers with micro accounts have become targets for cyber criminals in recent years who have taken advantage of this type of filing. They use the limited details for businesses who usually don’t have their own website to make their own fake websites appear real.
Car Dealer has revealed a number of scams that have used this way to dupe customers who want to buy a cheap car online.
