Scrapping Directors' Reports: More companies to become exempt

CREATED BY ROGER EDDOWES Published: 22/01/2026 @ 09:00AM #ScrappingDirectorsReports #UKBusiness #CorporateReporting #AnnualAccounts #RedTapeReduction #CompanyLaw

Scrapping directors' reports is the government's latest push to simplify annual reporting. More firms could qualify for a strategic reporting exemption, and group accounts may cover more subsidiaries. This means less duplication, clearer focus, and money saved ...

Scrapping Directors' Reports, Numbers on a page, Truth lies beneath the clutter

Corporate reporting is being nudged towards something more proportionate, and scrapping directors' reports sits right at the centre of that shift. The logic is straightforward: if a disclosure is repetitive, low-value for users, or already captured elsewhere, it should not be consuming management time and professional fees year after year.

It treats reporting as a tool for decisions, not
a box-ticking exercise!

The plan is framed as a practical reset of company reporting rules, with legislative steps being brought forward rather than waiting for a bigger consultation. Scrapping directors' reports is expected to remove a long-standing annual requirement for a very large number of companies, which in turn changes how smaller and mid-sized finance teams plan the year-end timetable.

I see this as a signal that the government wants reporting to be leaner, more readable and more aligned to what investors and creditors actually use.

Alongside the directors' reporting changes, the strategic report is also in scope, which is where many medium-sized private companies will feel the difference. A wider strategic reporting exemption would mean that businesses which are not in the business of raising public capital can spend less time crafting narrative sections that often restate what is already known to those closest to the company.

Groups may see an additional simplification when wholly-owned subsidiaries can rely on disclosures presented at the parent level. Scrapping directors' reports in that context is not merely about removing pages; it is about reducing duplication across the group, so the story is told once, in the right place, at the right level of accountability.

The upside is focus: fewer documents to approve, and more time
for what the numbers and risks are actually saying!

There is also a wider ambition to modernise reporting as a whole, including how it works in a digital environment and how different parts of the annual report connect. This is an early move rather than the final destination, with broader reforms expected to examine what belongs in the annual report, what belongs elsewhere, and what should be structured for easier re-use.

I think that the practical question, of course, is what replaces anything that stakeholders still rely on, and how transitions are handled without creating uncertainty.

Directors' reporting changes can be clean if the remaining requirements are clear, consistently interpreted and well supported by guidance, particularly where disclosures have historically been 'parked' in the directors' report.

This is where policy intent must translate
into precise drafting!

Even with those details to resolve, the overall trajectory remains positive because it aims to make compliance efforts match real-world value. Scrapping directors' reports, coupled with a broader strategic reporting exemption and clearer company reporting rules, should give many companies a more efficient year-end process and a tighter, more decision-useful annual report.

If the reforms deliver as intended, I know that businesses will spend less time repeating themselves and more time building.

Until next time ...

ROGER EDDOWES
Join our mailing list! Click here and be one of the first to know when we publish a new blog post!

Share the blog love ...

Buffer Facebook Twitter Linkedin Pinterest WhatsApp #ScrappingDirectorsReports #UKBusiness #CorporateReporting #AnnualAccounts #RedTapeReduction #CompanyLaw

About Roger Eddowes ...
Roger trained at Edward Thomas Peirson & Sons in Market Harborough before working at Hartwell & Co, followed by Chancery, as a partner. He started Essendon Accounts and Tax with Helen Beaumont in 2014 as a general practitioner with a hands-on approach. Roger loves getting his hands dirty, working with emerging, small-to-medium and family businesses to ensure they receive the best possible accountancy advice. Roger utilises an extensive network of business contacts to leverage the best guidance and practical solutions.

More blog posts for you to enjoy ...
		Employment Rights Act Timeline for Employers: What's Changing in 2026 and 2027 The Employment Rights Act will be implemented in phases across 2026 and 2027. My blog post guides you through the changes that occur and what to prepare for. It's a practical, conversational timeline for staying confident and...
		Government Makes Further Concessions on Inheritance Tax reforms for Farms and Firms Here's the latest on Inheritance Tax reforms: the APR/BPR allowance is rising to £2.5m. That should narrow the impact to the biggest estates while keeping planning practical. Less cliff-edge, clearer options, and more time to...
		Business costs are rising, yet smarter workers' rights reforms could ease pressure Business costs are rising, and bosses can feel it in wages and energy bills. However, the latest concessions on workers' rights could mitigate the impact and give firms more time to adapt. It's a pragmatic tweak that keeps pr...
		Key payroll changes for 2026 every UK employer should plan for now Key payroll changes for 2026 are mainly about higher wage floors, tighter thresholds and better forward planning. My blog post today walks through what shifts in PAYE, National Insurance, and compliance mean in practice. Cons...
		My predictions for small businesses in 2026: tax, tech and growth Here are my predictions for small businesses in 2026. I've been thinking about tax reporting changes, hiring incentives, cyber resilience, smarter AI use, sustainability data requests and new channels to market ......
		What HMRC using AI on social media really means for you Here's the lowdown on HMRC using AI to review social media in criminal tax probes. It's about more intelligent fraud detection with human oversight, not bots running wild. Taxpayers should receive clearer guidance and fewer e...
		How AI can help you prepare your tax return this year AI speeds up data capture and checks, while accountants provide guardrails. Use both to prepare your tax return with fewer errors and less hassle. It's efficient, affordable, and grounded in human oversight ......
		Merry Christmas 2025 from everyone at Essendon Accounts & Tax Not long to go now, and everyone at Essendon Accounts & Tax is looking forward to a well-deserved break over Christmas. We will be closing at 1pm on Wednesday the 24th of December 2025, returning at 8am on Tuesday the 5th...

Other bloggers you may like ...
		Workation in Milton Keynes: Work Smarter, Switch Off Faster Posted by Emily Freeman on https://blog.shortstay-mk.co.uk Thinking about a Workation? Milton Keynes makes it simple to stay productive without feeling stuck. You get strong connections for work and plenty of ...
		Key skills for job hunting: the habits that get you hired Posted by Dave Cordle on https://blog.davecordle.co.uk You don't need luck; you need repeatable habits. This blog post breaks down the key skills for job hunting, from research and networking to CV writing ...
		Practical email management to end small business inbox overwhelm Posted by Sarah Hannaford on https://blog.sarahpasolutions.co.uk If your inbox is running your business, you're not alone. This blog post shows how email management reduces overwhelm through smart prioritisation, fi ...
		Rethinking Added Value: Beyond more clients or your day rate Posted by Jacky Sherman on https://www.jackysherman.com 'Added value' - it's a phrase we hear all the time, isn't it? And almost always, when consultants talk about it, they're thinking about their pricing ...