Business Secretary Vince Cable announced last week that no small firm will have to have independently audited accounts any longer, saving 42,000 businesses £40 million per year.
He said: “It’s important that we free small firms up so they can grow and drive the economy. The changes I have announced today mean that small firms will be able to concentrate on growing and taking on more people instead of paperwork.â€
The areas of reform are:
• Firstly the small company audit and account rules are stricter in the UK than is required by
EUÂ law;
• For businesses with less than 10 employees, Government will push for exemption to remove the
requirements to produce two sets of accounts;
• For medium sized businesses Government will push for EU restrictions to be lifted so they no longer need
their account independently audited and;
• Finally, Government will look at relaxing the audit and accounts rules for subsidiaries.
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