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FRS105 Average Number of Employees and VT Accounts

FRS105 Average Number of Employees and VT Accounts

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Hello,

I understand that the average number of employees is required to be disclosed under FRS105.

I use VT accounts and this autohides nil balances including this note where applicable.

Is this acceptable for a director only company or should the accounts always include the number of employees statement even if this is nil for both the current and comparative years?

I see that Taxfiler shows nil if this is the case.

No great issue as the note can simply be unhidden.

 

 

Replies (8)

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By Matrix
19th Jul 2018 07:20

Isn't a Director an employee so how could it be nil?

I hadn't picked this up actually, I haven't been entering the info on the data sheet so VT is hiding that note. If it was nil you could unhide the note as you say.

Thanks (1)
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By thomas34
19th Jul 2018 07:36

Agree with Matrix. The number of employees (on the data sheet) is most likely "1". VT shows this at the top of the balance sheet declarations under the capital and reserves. They may be "overdeclaring" in some cases since this disclosure is only needed for accounting periods commencing on or after 1 January 2017.

Thanks (1)
RLI
By lionofludesch
19th Jul 2018 08:05

You can solve the ambiguity by adding the words "including directors" or "excluding directors" to the note.

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Replying to lionofludesch:
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By CWservices6064
19th Jul 2018 08:23

Thanks, that sounds the best option.

I had thought that directors without a contract of employment were excluded for the employee numbers calculation although I understand that guidance has now changed and that directors of owner-managed companies should always be construed as employees so there will always be at least one in these circumstances.

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RedFive
By RedFive
19th Jul 2018 08:57

I use TaxCalc and you can add an option to type in whatever you want so just put 'Director' and 1 though I am often tempted to type 'whinging cheapskate'.

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By Red Leader
19th Jul 2018 10:41

Sorry to be flippant but really I ask myself "who cares?". Really, who out there apart from us accountants cares whether Joe Ltd shows 1 or 2 or 0 or null employees?

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Replying to Red Leader:
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By CWservices6064
19th Jul 2018 10:58

.............agreed, its just a case of wanting to prepare the accounts as professionally as possible.

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Replying to CWservices6064:
By Red Leader
19th Jul 2018 17:55

To answer my own query, it does become an issue - though still a minor one- if anyone other than the sole s/h + director takes a keen interest in the notes.

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