{"id":21981,"date":"2022-05-24T19:14:44","date_gmt":"2022-05-24T19:14:44","guid":{"rendered":"https:\/\/smh.group\/?p=21981"},"modified":"2022-05-24T19:14:44","modified_gmt":"2022-05-24T19:14:44","slug":"more-disclosure-on-the-cards-for-businesses","status":"publish","type":"post","link":"https:\/\/devstagesite.co.uk\/smhgroup\/more-disclosure-on-the-cards-for-businesses\/","title":{"rendered":"More disclosure on the cards for businesses"},"content":{"rendered":"

A downside to running a limited company is that financial information is publicly available. However, micro-entities and small companies do not have to file a profit and loss account, so available information is somewhat restricted. This situation is set to change.<\/strong><\/p>\n

The information currently filed by a micro-entity at Companies House can be as little as just three figures: total fixed assets, current assets and current liabilities. If a company provides services, with profits largely withdrawn as remuneration, these figures might all be negligible.<\/p>\n

Thresholds<\/strong><\/h2>\n

For a company to be classed as either a micro-entity or small company, it needs to be below any two of three thresholds for turnover, balance sheet total (total of fixed and current assets) and average number of employees:<\/p>\n\n\n\n\n\n\n
 <\/td>\nMicro-entity<\/strong><\/td>\nSmall company<\/strong><\/td>\n<\/tr>\n
Turnover<\/strong><\/td>\n\u00a3632,000<\/td>\n\u00a310.2 million<\/td>\n<\/tr>\n
Balance sheet total<\/strong><\/td>\n\u00a3316,000<\/td>\n\u00a35.1 million<\/td>\n<\/tr>\n
Employees<\/strong><\/td>\n10<\/td>\n50<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

 <\/p>\n

A company can continue to qualify under either definition if it temporarily fails to meet the criteria for just the one year.<\/p>\n

Changes<\/strong><\/h2>\n

The key change in the government\u2019s white paper, Corporate Transparency and Register Reform<\/em>, published in February \u00ad\u2013 setting out its final position on reform ahead of introducing legislation \u2013 is that micro-entities and small companies will have to file their profit and loss account. This means that sensitive commercial information will be readily available to a company\u2019s competitors. Employees, customers, family members and any other interested parties will also be able to see how profitable a company is. In addition, small companies:<\/p>\n