Business Minister Jo Swinson has said “The Companies Act is understandably a complex bit of law. However, there are many areas where this has resulted in companies unnecessarily being tied down by red tape. Businesses told us through this bureaucracy cutting exercise just how time consuming some of the form filling is and how the rules they have to abide by are completely redundant. We have heard them loud and clear and are now taking action.”
It has been revealed that half of the 115 regulations on the day-to-day running of a company including preparing and filing accounts is now being scrapped, merged or simplified.
Peter Gradwell commented that “This is great news for small businesses who are typically under resourced when dealing with compliance and administration. The more time that business owners have to focus on running their business, the quicker we’ll see sustainable economic growth in the UK ”.
It has also been announced that a reform of the company and business name regime is being undertaken. Proposals include the removal of certain names from the list of words which require approval from a specified body before being allowed to register at company house.
This list consists of 161 words and expressions which include ‘Accredited’, British ’, ‘Groups’, and ‘University’.
The final announcement was around the proposals for companies with less than ten employees (known as micro-businesses), it has been suggested that they should be freed from red tape altogether by removing certain accounting requirements. If this proposal is accepted it is suggested that the UK’s 1.2 million micro-businesses would be able to prepare reduce annual accounts, draw up shortened balance sheets and profit and loss accounts.
(Photo by Theen..)
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