Micro-entities

Published: 29 May 2014
l
Author: WebAdmin

In September 2013, the UK Government confirmed that it will be introducing simplified financial reporting requirements for very small companies.

A micro-entity is defined as an entity satisfying at least two of the following criteria:

  • 10 or fewer employees;
  • Total assets of £316,000 or lower;
  • Turnover of £632,000 or lower.

Previously, micro-entities were subject to the same financial reporting requirements as other small companies with a turnover of as much as £6.5 million. The Government has recognised that this is an unfair burden, and as a result of these changes, micro-entities will be able to prepare reduced financial statements.

The exemptions apply to financial years ending on or after 30 September 2013. Micro-entities will be able to draw up an abridged profit and loss account and balance sheet, with much reduced disclosures. These accounts will be deemed to provide a true and fair view. The estimated 1.6 million micro-entities in the UK will continue to be exempt from the requirement to file a profit and loss account at Companies House.

The exemptions are optional. It will be for the directors of micro-entities to assess the possible effect of reduced disclosures on their company and to decide which form of financial reporting statement – micro, small or full – best meets their company’s needs.

Other Recent Posts

Radlett Rotary Fun Runs 2024

Nagler Simmons is delighted to be sponsoring this year's event as usual. The 2024 Radlett Rotary Fun Runs is on Monday 6 May 2024 (May Day Bank Holiday) and is open to all. Registration to take part can now be done online. It's great fun - why not take part? Register your entry now.

Disclaimer
These news items are for guidance only and professional advice should be obtained before acting on any information they contain. Nagler Simmons accepts no responsibility for loss suffered by any person as a result of action taken or not taken as a result of the contents of these items.

NAGLER SIMMONS
5 Beaumont Gate, Shenley Hill,
Radlett, Hertfordshire WD7 7AR

Phone symbol PHONE:
01923 839 619