It is intended that companies with less than 10 employees will be freed from some red tape by removing certain accounting requirements. Under the micros exemption proposal, micro-businesses would be able to prepare much reduced annual accounts.
There are 1.2 million micro-businesses in the UK and they will be able to draw up shortened balance sheets and profit and loss accounts and will remain exempt from the requirement to file the profit and loss account.
Other measures include:
- Reform of the company and business names regime. Proposals include removing certain names from the list of words which require approval from specified bodies before being registered at Companies House such as; ‘Accredited’; ‘British’; ‘Group’.
- Simplification of the regulations a company must abide by when displaying the company name at their premises, on paper or online.
- Amendments to the Companies Act which will simplify the system for companies to use assets to raise finance, streamline company annual reporting requirements and repeal certain filing obligations when companies change their auditors.
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Susie Hughes © Shout99 2013