New Filing Requirements
The proposals of new filing requirements for small and micro companies at Companies House means significant changes ahead, as all companies will be required to file a profit and loss account, balance sheet and director’s report.
There is still no confirmed date for the introduction of these changes, however, it is seen as a priority by the government and will be part of the Economic Crime Bill.
As part of the consultation, the government reviewed the type of accounts being filed by small and micro companies and plans to simplify the framework by reducing the filing options to just two: micro-entities and small companies. It will remove the abridged and filleted accounts options to make the system easier to understand, reduce fraud and error, and increase transparency.
All small companies will then be required to file a profit and loss account, and a balance statement. This will ensure that key information such as turnover and profit or loss is available on the public register to help creditors and consumers make informed decisions. Small companies will also have to file a director’s report.
The current filing periods of nine months after the end of the reporting year for a private company and six months for a public company will not be changed, with the government stating that it could review this in the future once the impact of the pandemic has waned.
There will also be a requirement to use full iXRBL tagging of accounts information on the register and Companies House will reject accounts that do not meet the required tagging standard. It has also clarified the requirement for a company to prepare and deliver one set of accounts. This proposal closes the loophole where a company can file multiple accounts with different government departments.
The adjustments are part of a strategy to reduce fraud and increase transparency over company creation and associated data. Companies House will have more authority to investigate suspicious director appointments or filings, sharing with law enforcement and other government bodies.
For further details please contact Yasin Khandwalla by email at Yasin.Khandwalla@elmanwall.co.uk or by phone on 020 7600 5667.