WAITING FOR THE BUDGET
WAITING FOR THE BUDGET
Our newsletter has been on hold waiting for the Autumn budget. Ahead of next Wednesday, we wanted to touch base on some non-tax issues.
THRESHOLDS FOR ACCOUNTS/AUDIT – MICRO, SMALL, MEDIUM AND LARGE
The thresholds that determine the size of companies were set to rise by 50% from October 2024. The size of a company determines the specific content requirements of the accounts to be prepared and filed at Companies House, as well as when companies require an audit. However, following the change of government, the proposed legislation has yet to be progressed. So it is business as usual.
A HEADS UP – FUTURE FILING REQUIREMENTS
The Economic Crime and Corporate Transparency Act received Royal Assent in October 2023 and is resulting in various reforms to ensure financial information in the public domain is improved. One of the key changes affecting you will be the need to file a profit and loss account at Companies House—it is almost certain this data will be made publicly available. This is to evolve through subsidiary legislation but is likely to be effective from January 2026.
ANOTHER HEADS UP – CHANGES TO ACCOUNTING REQUIREMENTS (FOLLOWING UPDATES TO FRS102)
The changes come into effect from January 2026. There are implications for small and (but less so) for micro accounts. There are revised rules on revenue recognition and accounting for leases. There will be mandatory disclosures for small companies including going concern, dividends paid/proposed, and a statement of compliance with the accounting standard.
VAT – WHAT HMRC EXPECTS – GFC8
HMRC has set out their expectations on what companies should do to get their VAT payments right. There is no de minimis re-application, although much of the complexity won’t apply to many businesses. Systems, procedures, and controls are expected to be commensurate with the nature and size of the business. HMRC basically says if you don’t have sufficient controls in place and get your VAT wrong, then on your head be it!
See link below:
https://www.gov.uk/government/publications/help-with-vat-compliance-controls-guidelines-for-compliance-gfc8
IMPORTANT DATES
31st January: Self Assessment payment due
25th December: Christmas!!!!
9 Months after your EOY: Corporation Tax is due for payment