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Reducing financial reporting requirements for 'micro businesses' - good idea?

Reducing financial reporting requirements for ...

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Are you a "micro business"? If so Accounting Web wants to hear from you. The government defines micro businesses as meeting two out of three of this criteria: balance sheet total of £316,000, a net turnover of £632,000 and an average number of employees in a financial year of 10 or fewer. Under new legislation to cut red tape, the smallest UK businesses will now be able to produce an abridged balance sheet and profit and loss account and can choose not to file an annual account with Companies House. if you're a micro business do you think the exemption from some financial reporting rules will make a significant difference to your business -- saving you time and money preparing accounts? Will the new measures mean less business for tax advisers?

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By Jimess
12th Sep 2013 16:49

Not unless.....

a) HMRC relax the rules relating to accounts accompanying CT returns - even though CH accepted abbreviated accounts for a number of years HMRC have still insisted on full accounts.

b) Banks and financial institutions change their information requirements for considering lending.

c) Businesses can find some other means of measuring profitability regularly.

d) HMRC relax business record checks for small businesses.

Our work may change slightly but clients will still require support for compliance issues - there is still a certain amount of work to be done, still disparity between accounting treatment and tax treatment on certain transactions, complex rules on p11ds, capital allowances, directors loans, loss reliefs etc that need to be considered. They are still just as pertinent for micro businesses as they are for larger corporates.

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By 3569787
03rd May 2016 16:54

HMRC is the problem not CH

;

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the sea otter
By memyself-eye
12th Sep 2013 19:38

I love this definition of 'Micro'

£632,000 turnover... I wish.... Employees? Balance sheet £316,000 - dream on. Try businesses trading under the VAT threshold, then talk about 'Micro'. What Bozo dreams up these parameters?

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