Companies House Reforms you need to know

Companies House Reform

We thank Eros Business Consulting for bring us news about the proposed reforms of Companies House which may well raise the cost of running Companies in the UK

• In light of the Russian invasion, the sanctions and the clampdown on the movement of ‘dirty money’, the Government is accelerating plans to reform Companies House.
• The Government White paper rolled out with the Draft Economic Crime Bill, when or if enacted, could have a major impact on micro and small companies when filing accounts.
• Under the proposal these companies will lose the option to file abridged and filleted accounts.
• They would have report profit and loss statements, as well as balance sheets, removing some of the privacy presently enjoyed by some of these entitiesSould this worry us as Company and SME owners?

  Small companies, but not micro-entities, would also have to file a directors report.

• The aim will be that Companies House becomes fully digital.
• Directors or their accountants will have to file digitally tagged accounts, using iXBRL. Once tagged it will make it easier to search and cross reference information held by  HMRC.
• Under the proposed new rules, the Government would require all third party agents to be registered and supervised in the UK if they want to set up companies and file accounts.

Accountants already file accounts using the iXBRL system, but for many businesses they we send it as a very simple abbreviated balance sheet.

These changes would mean a whole lot more info being there in the public domain including Profits, Directors remuneration, dividends, turnover etc.

Whether the cause for this additional cost to businees can be laid at the feet of the Ukraine Crisis is a moot point?

Information supplied by Eros Business Consulting who are Long Term Headline Sponsors allowing PHN to provide a Free Opchat News