{"id":4840,"date":"2023-06-05T15:14:14","date_gmt":"2023-06-05T15:14:14","guid":{"rendered":"https:\/\/www.georgehay.co.uk\/blogs\/?p=4840"},"modified":"2023-06-05T15:14:14","modified_gmt":"2023-06-05T15:14:14","slug":"small-company-filing-options-streamlined-companies-house","status":"publish","type":"post","link":"https:\/\/www.georgehay.co.uk\/blogs\/2023\/06\/small-company-filing-options-streamlined-companies-house\/","title":{"rendered":"Small company filing options to be streamlined by Companies House"},"content":{"rendered":"

Since September 2022, the Economic Crime and Corporate Transparency Bill has been making its way through parliament. The Bill, among other things, sets out key changes to small company filing options.<\/p>\n

The intention is to make more financial information available to the public, and improve transparency of the company register.<\/p>\n

Companies House estimates that organised fraud costs businesses and the public sector approximately \u00a35.9 billion each year. By requiring more detail, this type of activity should become easier to spot.<\/p>\n

It also argues that, by improving transparency, lenders can offer financial backing to businesses with greater confidence and so businesses will be better supported as they grow.<\/p>\n

Fewer filing options for small companies and micro-entities<\/h5>\n

As it stands, a small or micro company preparing abridged or full accounts for its members is not required to file a copy of its profit and loss (P&L) account. This also applies to the director\u2019s report.<\/p>\n

A profit and loss account shows how much money your business has made \u2013 i.e., a \u2018profit\u2019 or a \u2018loss\u2019. It captures both revenue and expenses in a trading period.<\/p>\n

Plans to reform the reporting and filing requirements at Companies House<\/a> include limiting the filing options to micro-entities and small companies and removing the option to file abridged or filleted accounts.<\/p>\n

This means that rather than filleting out information prior to submission, removing the P&L and some notes, small and micro companies will need to file what they prepare in terms of their profit and loss account.<\/p>\n

Companies will not be required to show the detailed profit and loss, but a summary. This will, however, mean that the business\u2019s turnover and profit will be on public record.<\/p>\n

We anticipate that further detail, as well as associated timescales for implementation, will be set out in secondary legislation.<\/p>\n

Other changes impacting company accounts<\/h5>\n

Beyond those outlined above, there are a few other changes on the horizon as follows:<\/p>\n