Companies House – a change in what is filed for small and micro companies
At the moment a small company has nine months to file its accounts with Companies House. A small company can also file less information at Companies House such as removing the profit and loss account.
There is a consultation in progress to change the way small companies file information and this process which closed on the 3rd February 2021. In this consultation it is suggests a number of areas of change, namely:
- That Small companies may have to file accounts between 3 to 6 months after their year-end date
- No longer able to file accounts without the profit and loss account
- To file full digital accounts to enable Companies House to perform certain validation checks before they are published.
This will mean small companies will have much less time to file their year-end accounts. To avoid this companies must have accounting records that are accurate and up to date at all times and using preferable using software to enable this. You will also no longer be able to hide items in your profit and loss account from your competitors and the public.
There is of course another outcome if these changes are implemented, that being, more companies will find they fall into the penalty regime https://www.gov.uk/government/publications/late-filing-penalties/late-filing-penalties
At McMillan Rose we can advise you on software and assist in keeping your records up to date. These penalties are a voluntary tax and the choice is yours to avoid them.