‘Simplification’ for micro entities
Under new rules, micro-entities (defined as those with a balance sheet total assets less than £316,000; net turnover less than £632,000 and fewer than 10 employees (average) during the financial year) will be able to take advantage of new rules from 30 September 2013. The new rules will allow them to prepare their accounts without recognising accruals or prepayments as long as these relate to ‘charges other than the cost of raw materials and consumables, value adjustments, staff costs and tax’. Apart from this limited exemption, normal accruals accounting would still apply. However, these rules only relate to accounts filed with Companies House and micro-entities would still be required to prepare accounts with full accruals and prepayments for submitting to HM Revenue & Customs which would mean duplicating work required to prepare accounts and tax for the year end.
In our view, these changes lead to additional complexity and cost rather than the simplification intended. Therefore, we will be continuing to prepare accounts in accordance with the UK accounting standards required by HM Revenue & Customs which will also fulfil the requirements for Companies House. This will continue to make the year end process as simple and efficient as possible for clients.
Guide to selling your business
Your simple guide to helping you maximise the value in your business.
Sign up to receive alerts
Call us on 01628 770 770 for a no-obligation chat
You may also be interested in...
July 2024 – Tax News
Well, it’s almost here, and by Friday this week we'll know who's in charge of the country. If you believe the polls, then Labour are set for a landslide victory. So ahead of the election on Thursday, we take a look at what the main parties are…
Property Newsletter – July 2024
Welcome to our monthly newsletter for property landlords. We hope you find this informative and please contact us to discuss any matters further. In this edition of our newsletter we take a look at the main political parties’ election manifestos to…
Tom and Paul announced in Accountancy Age 35 under 35
The Accountancy Age 35 under 35, in partnership with AJ Chambers, seeks to highlight the rising stars of the accountancy profession, featuring those who have made great professional contributions to the field and their individual firms. We're proud…