The required format for statutory accounts for small companies has changed. We consider the reporting requirements and their impact.
At KG Accountants, we can provide guidance on the new reporting standards.
The required format of statutory accounts that small companies have to prepare and send to Companies House has changed for accounting periods ending on or after 1 January 2016 (or 1 January 2015 if early adopted). In March 2015 the UK Government approved new regulations which have significantly changed the small companies’ regime.
The extent of the change will vary on a company by company basis. It will depend upon the nature of the company’s activities and the types of assets which it has.
This factsheet sets out the key changes and their impact and we would be happy to assist you in providing specific advice for your company.
The accounts of a micro-entity are considerably shorter and simpler than those otherwise required for a small company. Micro-companies are no longer required to prepare a Directors’ report.
The profit and loss account and balance sheet include less detail. For example current assets are shown in aggregated total on the balance sheet rather than being analysed into stocks, debtors and cash.
No notes are required, instead where applicable, details of the following should be disclosed at the foot of the balance sheet:
- directors’ advances, credits and guarantees, and
- guarantees, contingencies and other financial commitments.
Only the balance sheet and the footnotes need to be filed at Companies House. The profit and loss account does not need to be filed.
The company does not need to produce (nor file) typical small company notes such as:
- accounting policies
- post balance sheet events, and
- related party transactions.
Fair value accounting and alternative accounting rules cannot be applied in micro-entity accounts, meaning no revaluations or measurement at fair value is permitted.
Along with the full set of accounts, HMRC will require a CT 600 to be completed. This is not a straightforward form, so unless you have the necessary experience, it’s best left to an accountant.
Regardless of how much they earn, each company director may have to complete a self-assessment showing all of their income, not just that received from the company.
Any business that employs staff has a number of reporting requirements. Under PAYE (RTI), almost all employers are required to report their payroll information to HMRC online on or before each payday. Payroll information is reported to HMRC each time you submit your payroll information.
KG Accountants based in south London are small business accountants who provide Small business accounting services and Taxation services including completing and filing your tax returns, Limited Company Accounts, payroll, bookkeeping and VAT at a reasonable price.
If you need to speak to a Pro active Accountant about your new venture, please contact us on 0208 679 4690 please Visit our website.