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Company Law Changes – Small Company Accounts
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The Economic Crime and Corporate Transparency Act recently came into force. This new legislation means that micro companies and small companies will need to file more in-depth financial information on the public register at Companies House.
If a company meets two of the following three criteria it is classed as a ‘micro company’; turnover less than £632k; balance sheet less than £316k; fewer than 10 employees. Micro companies currently only need to file a very simple balance sheet and the number of employees.
If a company meets two of the following three criteria it is classed as a ‘small company’; turnover less than £10.2m; balance sheet less than £5.1m; fewer than 50 employees. Small companies currently only need to file a simple balance sheet and the number of employees.
Going forwards, both micro and small companies will have to file information from their profit and loss account. Small companies will also have to file a directors’ report. The exact details of the new requirements have not yet been disclosed but it will almost certainly mean that turnover and profit / loss figures will need to be disclosed by all limited companies in the future.
More information available here: https://changestoukcompanylaw.campaign.gov.uk/changes-to-accounts/