'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.