On Dec. 10, UK GVT issued law to reduce company reporting burdens.
UK GVT published The companies (accounts and reports) (amendment and transitional provision) regulations 2024 (StIn 2024/1303), amending various legislation.
Follows UK GVT May 2023 published CfE on non-financial reporting, see #173816.
Overview of Regulations
Amend the Small companies and groups (accounts and directors’ report) regulations 2008 (StIn 2008/409); Large and medium-sized companies and groups (accounts and reports) regulations 2008 (StIn 2008/410); Companies Act 2006 (CA 2006 (UK)).
As well as Limited liability partnerships (accounts and audit) (application of Companies act 2006) regulations 2008 (StIn 2008/1911) and consequential amendments.
The regulation reduces reporting burdens from rising by increasing the turnover and balance sheet thresholds by about 50%, that help determine whether a company qualifies as a micro, small, medium, or large entity for reporting and audit purposes.
Companies benefit from lighter touch financial/non-financial reporting requirements.
Reduces reporting burdens by removing many reporting requirements from directors’ report (part of annual report), which overlap with other reporting requirements or provide little material value to investors, other users of company reporting.
Effectiveness
These regulations come into force on Apr. 6, 2025.
In Mar. 2025, UK FRC issued updates, reporting threshold changes, see #247938.
