Hello,
I've submitted a set of amended accounts to Companies House for a CIC and a limited company recently. The wording on the notes to the accounts (both sets) state that "these accounts have been prepared in accordance with the micro-entity provisions of the Companies Act 2006 and FRS 105 - The Financial Reporting Standard applicable to the Micro-entities Regime (March 2018).". As such, no P&L was provided for either.
Both were rejected (at different times), the first letter received back from Companies House mentioned the reason for the rejection was that the accounts needed to include in the notes that they were prepared under the micro-entity regime/FRS105, or a P&L must be submitted. I re-sent the accounts with a letter stating that the accounts have been prepared under FRS105 and no P&L was therefore required with a "see note 1 in the accounts".
Companies House have now re-rejected the accounts stating "you have not sent a profit and loss (income and expenditure) account with these accounts", "Small companies must file a profit and loss or state that 'directors of the company have elected not to include a copy of the income statement within the financial statements on the balance sheet".
I see nothing under CA 2006, Section 444. CA 2006, Section 44 (5) "the copy of the balance sheet delivered to the registrar must contain in a prominent position a statement that the company's annual accounts and reports have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.".
Are they being unreasonable? Or, should I simply change the wording... What we sent originally is the default wording from our software provider and I believe it to be sufficient.
Thank you for any help.
Replies (6)
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Don't think your wording is quote there.
Our 'full' FRS105 accounts (including Income Statement) have a statement:-
"The financial statements have been prepared in accordance with the micro-entity provisions"
Our filleted FRS105 accounts (Registrar copy, excluding Income Statement) have a statement:-
"The financial statements have been prepared in accordance with the micro-entity provisions and delivered in accordance with the provisions applicable to companies subject to the small companies regime."
Both are part of the directors declarations on the balance sheet.
Section 444(5) specifically refers to
"the copy of the balance sheet delivered to the registrar must contain in a prominent position a statement that the company's annual accounts and reports have been delivered in accordance with the provisions applicable to companies subject to the small companies regime."
indicating that the wording must form part of the balance sheet and must contain the words "delivered in accordance with the provisions applicable to companies subject to the small companies regime".
You wouldn't usually have a Note 1 along the lines of yours in FRS105 accounts.
The wording must be shown as part of the directors declaration on the balance sheet for a micro-entity rather than as a note to the accounts.
For micro-entity companies, I always file by completing the Companies House template. It's dead easy to use and avoids any possibility of rejection.
These are amended accounts, Geoff. Last time I checked then Cos House own filing software wouldn't accept amended accounts.