'Micro-entity' accounts en route to Companies House

One-person limited companies are among the businesses that can now submit simplified financial statements to Companies House, as a way to ease the burden of accounting red tape.

In an update this week, the registrar said that it started accepting ‘micro-entity accounts’ from December 1st 2013, where the accounts apply to financial years ending on, or after, September 30th 2013.

To be considered a micro-entity, and to therefore qualify for the simpler accounting system, a company must have fewer than 10 employees; a balance sheet total  under £316,000 and turnover under £632,000.

An estimated 1.56 million companies are estimated to meet the criteria, meaning they can volunteer to prepare and publish simplified financial statements – a profit and loss account and balance sheet.

The simplification offering follows a government consultation earlier this year which found that subjecting the smallest traders to the same financial reporting rules as all other businesses was an unfair burden.

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Written by Simon Moore

Simon writes impartial news and engaging features for the contractor industry, covering, IR35, the loan charge and general tax and legislation.
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