Unlimited company: how to stop your profit and loss accounts going public
If you are a business owner in the UK, you may have recently received a reminder from your accountant or Companies House: From April 2027, your company’s Profit and Loss account will soon be made public. This change, which is part of a wider drive towards corporate transparency, means that anyone, including competitors, clients, journalists, and even curious neighbours, will be able to see, to the pound, how much revenue and profit your business makes. An unlimited company is one solution to prevent this transparency, but there are pitfalls.
Previously, most private limited companies only had to file a balance sheet, offering very limited insight into financial performance. But with new filing requirements looming, many directors are now asking:
“How can I keep my company’s financials private while still enjoying the benefits of a corporate structure?”
The answer might surprise you.
Published by Alexander & Co | Expert Chartered Accountants and Tax Advisors
Is There a Way to Keep My Company’s Financials Private?
Yes, and it involves a lesser-known structure called an Unlimited Company.
What Is an Unlimited Company in the UK?
An Unlimited Company is a legal business structure that, unlike a limited company, does not have to publish its full accounts, including the Profit and Loss statement, at Companies House. In fact, it doesn’t even need to file a balance sheet. This makes it one of the most discreet corporate vehicles available in the UK.
Key features of an unlimited company:
- Privacy: Financial details remain out of the public eye. No profit figures, turnover, or balance sheets are published.
- Tax treatment: For the most part, unlimited companies enjoy the same corporation tax rules as limited companies.
- Legal entity status: Like a limited company, an unlimited company can enter into contracts, sue or be sued, and continue beyond the life of its owners.
Why Don’t More Businesses Use Unlimited Companies?
The catch? Unlimited liability.
If an unlimited company goes bust, its shareholders are personally liable for all of its debts. That means your personal assets, such as your home or savings, could be at risk if the company becomes insolvent.
This risk means the structure is best suited for:
- Low-risk businesses with minimal exposure to debt
- Professionals or authors with intellectual property income
- Established businesses with consistent profitability and low liabilities
Real-World Example: Ian McEwan’s Unlimited Company
Need proof that this structure is used by savvy businesspeople? Take Ian McEwan, the celebrated British author. He’s owned a company since 2010, likely related to his publishing income. If you were to look him up on Companies House, you would expect to see details of his royalties and cash in the bank, right?
Wrong.
His company is an unlimited company, which means there is almost no public financial data available. You can’t even see a balance sheet. This level of privacy might be appealing if your company’s success attracts unwanted attention or if you prefer to keep your profits confidential.
Unlimited Companies vs. Limited Companies vs. Sole Traders
| Feature | Unlimited Company | Limited Company | Sole Trader |
| Public disclosure at Companies House | Minimal – very private | Profit & Loss soon required | No public accounts |
| Tax efficiency | Corporation tax applies | Corporation tax applies | Income tax + NICs |
| Personal liability | Unlimited | Limited to share capital | Unlimited |
| Separate legal entity | Yes | Yes | No |
| Suitable for | Low-risk, privacy-focused businesses | Most UK companies | Freelancers, microbusinesses |
Is It Still Tax-Efficient to Trade as a Company?
It’s worth noting that the tax landscape for small companies has changed:
- Corporation tax rates have increased
- Dividend allowances have been slashed
- Dividend tax rates are higher than before
- NICs for employees and employers have been reduced
This means the once-clear tax advantages of operating as a limited company are not as compelling today. For some business owners, particularly those in creative industries or with low-risk service-based businesses, an unlimited company could offer the best of both worlds: a corporate structure with maximum privacy.
Final Thoughts: Should You Consider an Unlimited Company?
If you’re concerned about your business’s Profit and Loss account being made public, especially if privacy is essential to you or your brand, an unlimited company could be a powerful yet underused solution. But this structure isn’t for everyone.
Unlimited liability is a serious risk, so professional advice is crucial.
At Alexander & Co, our specialist advisors can help you understand whether an unlimited company is suitable for your specific circumstances. We can also guide you on:
- Tax efficiency
- Privacy strategies
- Risk management
- Corporate restructuring
Contact Alexander & Co
If you would like to explore how to structure your business for maximum privacy and optimal tax positioning, get in touch today.
Keep your finances exactly where they should be, in your hands, not on public display.
Call us today on either 0161 832 4841 or 0207 167 7220. Alternatively, you can email info@alexander.co.uk or use the contact form on this page.
The contents of this article was provided by Rowan Morrow-McDade, ACA, CTA, Tax Director at Alexander & Co. Rowan is a Chartered Accountant, Chartered Tax Advisor and a member of the ICAEW
