LEADING mid-tier accountancy firm, French Duncan, has welcomed the government launch of simplified accounts for micro-entities, but warns that the tax burden remains.
Begins a spokesperson: “For financial years ending on or after 30 September 2013, micro-entities will now be able to prepare simplified accounts under the legislation to implement the EU ‘Micros Directive’ in the UK.
“To qualify for the exemption a company must meet two of the following conditions: a balance sheet total not exceeding £316,000; net turnover not exceeding £632,000 and an average number of employees during the financial year not exceeding ten.”
Alasdair Cairns, tax senior at French Duncan, said: “The purpose of the legislation is to reduce red tape for the UK’s smallest businesses and it is expected that around 1.5 million businesses will benefit from the measures, which allow for a condensed profit and loss account and balance sheet to be prepared as well as the continued exemption from filing a profit and loss account with Companies House.
“However, it is important that small business owners who opt to apply the micro-entities exemption realise that this does not remove the requirement for good record keeping for tax purposes. With HMRC’s increasing focus on SME companies in recent years, full backup and analysis must still be available.”
Cairns points out that, in practical terms, from a company tax perspective, full records will still have to be maintained and accounts will still have to be submitted electronically to HMRC with full UK GAAP disclosures until at least the second half of 2014 under online filing requirements.
For further information please contact Alasdair Cairns on tel 0141 221 2984
Issued on behalf of French Duncan by Liquorice Media tel 0141 297 1699 www.liquorice-media.com
Date: 25th September 2013.
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