Major Revision To Accounting Rules For Small Companies

As part of the UK being brought in line with a new 2015 EU directive, so that across the EU, the same accounting rules apply, for accounting periods beginning on/after 1st January 2016, the thresholds for what qualifies as a small company are changing and a new entity (the Micro company) is being introduced. The FRSSE (financial reporting standard for smaller entities) will be abolished.

Going forwards, Small Companies will now have to include a profit and loss account in the accounts they file at companies house, whilst Micro companies can just continue to file an abbreviated balance sheet as small companies presently do. Micro entities can also dispense with the Director’s Report.

If LTD companies in the Guildford area require an accountant to deal with these changes, we would be pleased to help you.

The new thresholds will be:

Micro Entity

Turnover – £625,000

Balance Sheet Total – £312,000

Employees – 10

Small Company

Turnover – £10.2m

Balance Sheet Total – £5.1m

Employees – 50