Simplification of micro-business and freelancers reporting moves step closer

Entitled 'Simpler Reporting for Smaller Businesses', the document lays down ideas to decrease the amount of reporting undertaken by micro-firms. According to the FRC, about 5 million firms could benefit from this.

The paper proposes that the UK's smallest firms will no longer need to file a profit and loss account. Instead they will file simplified trading statements, annual returns and statements of position. It also suggests that an integrated software package be developed to help them do this.

The minister for corporate governance, Edward Davey, said that the reduction of unnecessary regulations will give micro-businesses and limited company contractors the opportunity to innovate and grow, thus benefiting the whole of the UK economy. The government now has the opportunity to deliver its promises to micro-businesses after deregulating them from EU rules, he added.

The government looks forward to gathering responses to the proposals from interested parties, such as banks, customers and government agencies, because any financial reporting regime must also provide them with useful information.

This discussion paper, which complements the recent OTS document on suggestions for simplifying micro-business taxation, has been designed to stimulate debate and accumulate evidence before the coalition decides what action to take. The consultation will remain open until the 30th of October 2011.

© 2011 All rights reserved. Reproduction in whole or in part without permission is prohibited.
Image: Large Order Of Toast by JD Hancock