The Government has given its final response to a number of consultations on Corporate Transparency and Register Reform for Companies House and has set out a number of changes it will be making in the future ...
I'm pleased that these reforms to Companies House don't come into effect anytime soon!
The Economic Crime Transparency and Enforcement Act was the first to be introduced and the next major development will be Companies House reform.
"It is in need of modernisation!"
The Government has consulted with various bodies on the extent of the reforms needed. Its final white paper was issued at the end of February 2022 and involves significant changes to filing requirements, which include Profit & Loss accounts for small and micro-businesses.
I do welcome many of these measures as they will benefit the economy, and help reduce economic crime. The quality and value of financial information as well as digital filings and greater checks on that information are quite useful too.
These key changes include:
Filing deadlines are not being shortened right now, but legislation is to be introduced to facilitate changes in future
Small companies will no longer have the option to prepare and file abridged accounts and will be required to file both their profit and loss account and directors' report
Micro businesses will also be required to file their profit and loss account, but will continue to have the option to either not prepare or file a directors' report
Dormant companies will be required to file an eligibility statement
All companies will be required to file accounts digitally
I've always thought that shortening filing deadlines will have a detrimental effect on the quality of reporting, so I'm pleased to see these time periods will not be reduced anytime soon.
I'm not best pleased that the micro businesses will be required to file a Profit & Loss account rather than abridged accounts, but I see their point of view. If you're afforded limited liability protection, you need to be transparent about it.
"But it could include sensitive commercial information!"
I'm pleased that these measures don't come into effect anytime soon, but I recommend you keep up to date with these changes and do discuss the implications with me if you're at all worried.
Until next time ...
ROGER EDDOWES Business Godparent
Would you like to know more?
If anything I've written in this blog post resonates with you and you'd like to discover more about these Companies House reforms, it may be a great idea to give me a call on 01908 774320 and let's see how I can help.
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Roger trained at Edward Thomas Peirson & Sons in Market Harborough before working at Hartwell & Co, followed by Chancery, as a partner. He started Essendon Accounts and Tax with Helen Beaumont in 2014 as a general practitioner with a hands-on approach.
Roger loves getting his hands dirty, working with emerging, small-to-medium and family businesses to ensure they receive the best possible accountancy advice. Roger utilises an extensive network of business contacts to leverage the best guidance and practical solutions.
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