Learn about likely changes to the information included in small company accounts which are filed at Companies House Learn how the Government is planning to ramp up the information that has to be included in a small company’s accounts filed on public record.
I think we all agree that under the current regime where we can file ‘filleted’ accounts or micro accounts, very little information can be gleaned by the reader about the trading of the company concerned.
On the back of the Russian invasion of Ukraine, the sanctions and the clampdown on the movement of ‘dirty money’, the Government is accelerating plans to reform the filing requirements of accounts put on public record at Companies House. The Government White Paper if enacted could have a major impact on micro and small company filed accounts.
Under the new proposals small and micro companies will lose the option to file abridged and filleted accounts and instead they will have to file profit and loss statements as well as balance sheets, removing some of the privacy currently enjoyed by these entities.
Small companies but not micro entities would also have to file a directors’ report.
Under the new proposals, Companies House will become fully digital, and all accounts will have to be digitally tagged, using iXBRL which will make it easier for H.M. Revenue & Customs to compare the accounts with information which they hold about the entity.
Finally, the Government would require all third part agents to be registered and supervised in the UK if they want to set up companies and file accounts – this is good news for Chartered Accountants such as ourselves.
Owners of small businesses need to be aware of the changes which are just around the corner, be aware that they are likely to need supervised accountants in order to file their accounts and that much more transparency of information available on public record is the likely outcome in the future.
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