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ICAEW raises awareness of new accounting rules

ICAEW raises awareness of new accounting rules

The Institute of Chartered Accountants in England and Wales (ICAEW) has warned that new accounting rules for small companies is causing Companies House to reject some accounts filed with them because of uncertainty over filing options.

The news is relevant to new contractors and personal service companies who are looking to set up their company and submit their information to Companies House.

Recent changes mean small companies are no longer able to submit so-called abbreviated accounts for periods beginning on or after 1 January 2016.

Small companies are still able to take advantage of some filing options under this new regime. Misunderstandings have arisen in certain cases however, and some company accounts have been rejected by the Registrar of Companies once filed.

“The new regime reflects UK implementation of a new EU accounting directive and means that small companies can no longer file an abbreviated version of their full accounts at Companies House – they have to file the version they prepare for members,” said Nigel Sleigh-Johnson, head of ICAEW’s Financial Reporting Faculty. “But they can, for example, prepare abridged accounts for members and file those, provided shareholders all agree. There are other options too, such as choosing to remove the profit and loss account from the accounts filed on the public record. There are a number of different scenarios identified in the guidance, which explains the requirements in each case.”