Hi
This is important news for all small companies; at the moment small companies can file abbreviated accounts - just a summary balance sheet and NO profit and loss account. This means we get to keep a secret the detailed information about the running of our businesses, including sensitive areas like turnover, gross margin, staffing ratios, overheads
etc.
But to help combat economic crime proposed changes in company law going through parliament mean small companies will have to file full accounts in future.
This is being rushed through now in response to the Ukrainian crisis to help the imposition of sanctions and reduce organised crime and money laundering. The government is therefore accelerating the planned changes having now issued its corporate transparency and register reform whitepaper with the detailed proposals, accompanied by a draft economic crime Bill.
The impact of these proposed changes, however, on those who are not money launderers – but just law-abiding business people with registered companies, together with their accountants – is potentially significant. It also means any competitor will be able to look at your business in far more detail.
Noel Guilford