Year-End & Cash Flow

New accounting rules could see small company filings rejected

Fred Heritage | 5 October 2016 | 8 years ago

online
Small firms remain able to submit filtered? accounts or abridged? versions of balance sheets and profit and loss accounts.
A leading accountancy and finance association has warned smaller UK company owners that they could see the accounts they file with Companies House rejected due to confusion over new filing options.

According to theinstitute of Chartered Accountants in England and Wales (ICAEW), recent changes to UK company law have resulted in a spike in rejections among small firms which register accounts with the government’s Companies House service, as owners fail to navigate new rules.

The main point of confusion has centred on whether small business owners are still able submit shorter, so-called abbreviated? versions of their accounts, such as simply a company balance sheet, signed by a director.

Under the new system, small company owners can still submit abbreviated accounts to Companies House for periods ending before 31 December 2016, provided they have not already chosen to adopt the new regulations. However, the new rules remove this option for accounting periods beginning on or after 1 January 2016.

There are certain account filing options that remain open to small UK business owners. The new system introduces a file what you prepare? model, whereby accounts filed with Companies House should mirror those prepared for company members.

Smaller firms remain able, however, to submit filtered? accounts, which don’t need to include a profit and loss account or a director’s report. Also open to small companies is the ability to file abridged? versions of balance sheets, profit and loss accounts, or both.

Commenting on the changes, head of the ICAEW’s financial reporting arm Nigel Sleigh-Johnson indicated that very few businesses have used this option so far, and that most continue to file abbreviated accounts under the old rules.

the new regime reflects the UK implementation of a new EU accounting directive and means that small companies can no longer file abbreviated versions of their full accounts they must file the version they prepare for members, explained Sleigh-Johnson.

Together with Companies House, the ICAEW has produced a series of FAQs alongside background information on the new filing options to enable small companies to steer through the new system.

there are a number of different scenarios, identified in the guidance, which explain the requirements in each case, added Sleigh-Johnson.

Micro firms require greater clarity on tax digitisation, a new study has revealed.

Related Topics

HMRC targets small businesses in tax avoidance crackdown
22 May 2023

HMRC targets small businesses in tax avoidance crackdown

Read More →
How To Print SA302 Tax Calculations From Your Online Self Assessment Account
17 May 2022

How To Print SA302 Tax Calculations From Your Online Self Assessment Account

Read More →
Managing your tax liabilities so that it doesnt kill cashflow
14 December 2020

Managing your tax liabilities so that it doesnt kill cashflow

Read More →
The complete guide to UK business rates
4 September 2020

The complete guide to UK business rates

Read More →
VAT deregistration – Everything you need to know
4 September 2020

VAT deregistration – Everything you need to know

Read More →
What is the difference between a sole trader and a limited company?
21 August 2020

What is the difference between a sole trader and a limited company?

Read More →

If you enjoy reading our articles,
why not sign up for our newsletter?

We commit to just delivering high-quality material that is specially crafted for our audience.

Join Our Newsletter