Changes in the rules of the small company files in the United Kingdom to be suspended

Digest opened free editor

Rola Khaleda, FT editor, chooses her favorite stories in this weekly newsletter.

The ministers are scheduled to raise the reforms to the home of companies that were required to provide their accounts in a more famous way as part of the government’s attempt to reduce the red strip on the UK PLC.

According to the legislation submitted by the previous government, small and small companies will be forced to April 1, 2027 Detecting their profits and losses For the first time as part of their annual accounts.

The proposals are designed to remove long -term exemptions that allowed these companies to provide “brief accounts”.

All companies will also be asked to submit their annual accounts using a coordinated program known as IXBRL (the language reporting of the joined work).

But an ally of Jonathan Reynolds said that the Minister of Business would reflect plans to reduce the organizational load on companies. And they said: “This will not happen as long as Johnny is in his place.” “It is not commensurate with our planning plans.”

The Law of Economic Crime and the Transparency of Companies, which was transferred to the law in 2023, included a threat to how financial statements in the United Kingdom as well as the content of that data.

The legislation raised concerns that the changes will allow the competitors to “intrude” on each other’s margins and damage the authority to negotiate with small companies.

Business groups have warned that this “organizational expansion” will force companies to pay the costs of programs from adult service providers or the use of a third party agent to prepare their accounts and send them in electronic format, which creates “cost and disorder”.

The proposals were placed to improve the safety of the companies ’house after many scandals that involve shell companies or fraud.

the Industrial strategy,, Which was unveiled by Reynolds at the end of June, has a target to reduce the red tape of companies by 25 percent as part of a broader plan to simplify the regulations and make them “easier and cheaper” to work in the UK.

The Union of Small Companies said that the plan “looks like positive news” and a mitigation of small companies and companies managers “must improve the data of the companies’ house, but it does not want to wear the organizational gold that undermines them against competitors and powerful customers who can weap down that information against them. “

The companies said only last week that they were written directly to all UK companies registered to give them a “lot of time” to prepare for changes.

He said that the transition to the presentation of the programs was a “critical step” in improving the accuracy and quality of data on the record, reducing errors and coordination issues and speeding up the processing times.

At the same time, companies have been banned from the option to provide paper groups of financial data or by using specific systems via the Internet. These presentations will be rejected and can lead to late fees or penalties for managers.

However, Denkan Hamis, director of international transparency policy in the United Kingdom, said that “rowing again” on the reforms will be short -sighted.

He said: “We have learned from the painful experience that the Laissez-FAire’s approach to the company’s law is easily exploited by criminals and corruption factors-which reduces Britain as a reliable place to do business.”

He added: “Thwarting the transparency of companies at home also risks the UK research from hypocrisy, as it calls on others to open the records of their company abroad.”

“Although this news will disappoint many transparency and anti -financial crime advocates, we do not see this one of the most influential measures in the verb,” ​​said Ray Blake, of The Dark Money Files Podcast, who revealed some of the most terrible failures in the companies ’home to provide legitimate data.

“As long as other reforms are not diluted, the ECCTA, when implemented completely, will make life more difficult for those who seek to misuse the UK’s integration system.”

“This government is committed to avoiding unjustified burdens on companies as part of our plan for change,” said a spokesman for the Business and Trade Administration.

Companies did not immediately respond to the request for comment.