HMRC and Companies House are making improvements to the online filing process for micro-entity companies following an EU Directive to reduce red tape for business
HMRC already has filing software that is designed for unrepresented corporation tax customers with straightforward affairs. It is now improving this product to allow micro-entities the option to file simplified accounts if they choose.
From October 2014 micro-entities will have the option to file simplified accounts with HMRC.
From mid-November 2014 companies will also be able to send basic micro-entity accounts to Companies House.
To qualify to use HMRC’s online filing software to file basic micro entity accounts with Companies House using simplified financial statements (profit & loss account and balance sheets), they must meet two of the following criteria:
- turnover £632,000 or less and either;
- balance sheet where assets total £316,000 or less or; and
- average number of employees in the year is 10 or less.
The update is available at http://www.hmrc.gov.uk/news/ct-micro-entity.htm
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