Simplifying filing obligations
Are you aware of the changes to filing accounts at Companies House? If not, there are penalties for mistakes, so it is important to ensure that you are up to date with the latest information on these changes.
What is changing?
Under the Economic Crime and Corporate Transparency Bill (the Bill) the Government is bringing in new powers to tackle money laundering and other illicit activity.
However, alongside this, companies’ obligations for reporting to Companies House, will also change.
Current filing obligations for small businesses and micro-entities are defined in the same section Companies Act 2006. But with the new Bill these will now be separated into two sections.
The Bill simplifies the filing options for small businesses and as a result, they will no longer be able to prepare and file abridged accounts.
Instead, small companies will be required to file their profit and loss account and director’s report, which also removes the option of filing ‘filleted’ accounts.
Similarly, micro-entities will also now need to file their profit and loss account. However, they will retain a choice in whether they prepare a director’s report.
What does this mean for you?
This change will only affect companies classed as small or micro-entities. Small companies must meet at least two of these criteria:
- Turnover is less than £10.2 million
- The balance sheet is less than £5.1 million
- It has fewer than 50 employees
If you fit within this definition, then you will be required to abide by these new changes when they come into force.
This means filing their profit and loss account and director’s report. As all information sent to Companies House must be made publicly available this may raise some concern among business owners.
Nevertheless, they must file accordingly with the new rules each year and understand the changing requirements each time.
How can accountants help?
We can provide you with advice on how to adapt to these changes. With advice from an accountant, our team will be able to provide valuable insight into how these changes will affect your business and how to file information correctly to avoid penalties.
