Changes to Accounts Filing Company Directors Need to Know

Do you know about the changes to accounts filing in 2016?

This year we will see a number of changes to the requirements for businesses when preparing and filing their annual accounts, due to the release of The Companies, Partnerships and Groups (Accounts and Reports) Regulations 2015 on 6th April 2015, which amends the Companies Act 2006.

These changes must be adhered to for accounts relating to any date in 2016, but can be backdated to 1st Jan 2015 if chosen.

Read on to discover more details about the changes that are likely to affect your business.

Company size thresholds

These are some of the most notable changes dictated in the novel regulations;

• Small companies

Turnover limit – now £10.2m (was previously £6.5m)

Balance sheet total limit – now £5.1m (was £3.26m)

• Medium-sized companies

Turnover limit – now £36m (was £25.9m)

Balance sheet total limit – now £18m (was £12.9m)

These figures are based on the revisions to account standards by The Financial Reporting Council (FRC). Further details can be found on their website.

Abbreviated accounts

Another important distinction made is the new legislation that businesses are now unable to file abbreviated accounts at Companies House. A firm will now be required to file the accounts that they have prepared for their members.

However, small and micro-businesses will be allowed to prepare micro-entity accounts or abridged accounts for their members and then file those with Companies House.

These will contain a reduced set of information – filing requirements can be found in the Small Companies and Groups (Accounts and Director’s Report) Regulations 2008 as amended by the Companies, Partnerships and Groups (Accounts and Reports) Regulations 2015.

Limited Liability Partnerships (LLPs) will also be able to file abridged accounts if they choose, or micro-entity accounts (if small enough).

There will be more detailed advice reported on the gov.uk website soon, so keep an eye out to learn more about how these changes will affect your business.