Small company directors report

Small company directors report

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I am trying to confirm whether a small company (as defined by the Companies Act) has to prepare a directors report. The Act states that it needn't file one at Companies House but I have just been asked for one by HMRC.
Does the exemption only apply to filing but not to the preparation of a directors report ?
Many thanks.
Gerry Sims

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DougScott
By Dougscott
25th Sep 2006 16:29

New instructions from HMRC
I'd always filed abbreviated accounts and a detailed P&L with HMRC but recently they refused to accept them and have been insisting on a full set of accounts following guidance from their head office. Checking statute they seem to be correct in insisting on a full set of accounts.

One day this government will reduce red tape for small businesses but not anytime soon!

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By martinfoley07
25th Sep 2006 17:13

bad news, Doug, I'm afraid.
Next Companies Bill / Act (if it ever sees the light of day) is scheduled to scrap the whole concept of abbreviated accounts full stop!!!

Although, to be honest, I'm not sure that is such an outrageous thing. I have no idea what a would-be creditor is supposed to make of abbreviated accounts when dealing with a small entity with limited liability protection.

It wasn't until some recent postings that I realised many accountants sent in abbreviated accounts to HMRC and that they were accepted!!! (some offices apparently were accepting abbreviated accounts without a detailed P&L attachment. Goodness alone knows where that took the issue of "Discovery")

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By AnonymousUser
24th Sep 2006 10:16

Director's report
Abbreviated accounts may omit the director's report for filing purposes, but a full set of accounts complete with said report must still be prepared.

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