The Department for Business, Innovation and Skills has launched a consultation on cutting red tape for micro-businesses.

Wednesday 27 February 2013

Micro-businesses are to be exempt from some forms of bureaucracy under the terms of a consultation published today by the Department for Business, Innovation and Skills (BIS).

EU legislation recently defined the new category of ‘micro-entities’ to refer to ventures with fewer than ten employees, turnover of less than 700,000 euros (£289,415) or a balance sheet total of under 350,000 euros. Two or more of these characteristics are required.

After a directive was passed waiving certain forms of financial reporting for micro-entities, the UK government has launched a consultation on how best to implement the changes at home. Paperwork micro-entities are no longer obliged to complete includes drawing up notes to their accounts and recognising certain types of ‘pre-payments and accrued income’.

Because micro-entities are owner-managed, the consultation documents explain that there is often no need for additional information which larger companies produce for the benefit of shareholders.

The consultation is available on BIS’ website and will run until March 22nd.

By Victoria McDonnell

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