MORE than a million small businesses will now be able to file substantially reduced financial reports, the government confirmed yesterday.
Micro entities – those with less than ten staff and annual turnovers below £632,000 – are currently required to meet the same reporting standards as other small firms. But they will now have the option of only producing an abridged balance sheet and profit and loss account.
“We therefore need to make sure [micro business] can focus on growing their business – rather than completing unnecessarily detailed paperwork,” said business minister Jo Swinson.
The changes – which implement an EU directive – will apply from the end of this month.