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Red tape cut for small business
The EU has agreed to simplified accounting rules for small businesses, cutting the red tape for the UK’s smallest firms. Business ministers from across Europe met in Brussels yesterday and agreed accounting exemptions for “micro-entities”. Business minister Ed Davey said it could save firms as much as £300m a year. To join the new category of companies created by the agreement, companies must not exceed two of three criteria: a balance sheet total of €250,000 (£217,000); a net turnover of €500,000 and an average of 10 employees during that financial year.