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Detail of outcome
This report summarises public responses to the consultation, and explains the government’s response and next steps.
Measures to reduce burdensome accounting red tape for micro-business are now in place. Business Minister Jo Swinson said:
Efforts to reduce the burdens on the smallest companies, so that they can focus growing their businesses and creating jobs, should be welcomed. The creation of the micro-entity, a new category of company, means we’ve reduced the bureaucracy for the very smallest companies to a level which is fair according to their size.
The European Union has recently defined a new category of company, the ‘micro-entity’. Micro-entities are very small limited liability companies and qualifying partnerships.
This consultation sets out proposals for how the UK will implement the European Directive exempting micro-entities from certain financial reporting obligations. We are seeking views on how best to implement the Micro Directive, which permits several exemptions. We describe each exemption in detail and outline the related issues.
We welcome views and suggestions from companies, preparers and users of statutory accounts, and professional accountancy bodies. In particular, we are looking for evidence on potential benefits or costs of the proposals, or any unforeseen consequences.