Companies House reforms
As Proposed changes to Companies House in the Economic Crime Bill expected to achieve Royal Assent at some point this Spring will impact on many areas.
The proposals are expected to affect the following: -
1. Small companies will be required to file both Profit and Loss Account and Directors’ Report, removing the previous partial filing option.
2. Micro companies will be required to file their Profit and Loss Account but retain the option not to prepare a Directors’ Report.
3. All companies will be required to file digitally with full tagging.
4. Dormant companies will be required to file an eligibility statement.
5. The restriction of shortening accounting reference dates will be limited, potentially to once in 5 years, as with the option to extend such a period.
6. Changes to the powers relating to incomplete or inconsistent documents will be removed, with documents falling into these categories will be rejected.
There are continuing discussions regarding the length of time after the end of an accounting period in which the accounts should be filed. It is felt in some quarters that shorter filing periods would give more current information availability.