Category: Accounting

I have created below a simple table explaining the applicable frameworks:

To qualify as a micro-entity or a small company for accounting periods beginning on or after 6 April 2025, a company must meet at least two of the following three criteria’s:

A company qualifies as micro, small or medium-sized if it meets the size limits in its first financial year and retains that status until it exceeds them in two consecutive years.

Where an entity prepares its financial statements in accordance with an accounting framework, a statement of compliance needs to be included in the notes.

Bonus:

• A parent company may qualify as a micro-entity for its individual accounts only if it meets the micro-entity criteria itself and the group it heads qualifies as small. A parent company that prepares group accounts is not eligible to qualify as a micro-entity.

• A company that is not a parent but whose accounts are included in consolidated group accounts is not entitled to apply the micro-entities regime in it is individual accounts. Thus, UK subsidiary of an overseas parent will need to use FRS 102 (1A if small).

Sources:

Choosing the right regime | Small and micro-entity reporting | ICAEW

Everybody makes mistakes, so just in case you made one while filing accounts with Companies house information given below will be helpful.

Amended accounts can be filed in paper format by sending them via post to Companies house or via software.

Paper process given below:

They should have the word “Amended” on the first page, conspicuously declared.

You must clearly say in your new accounts that they:

• replace the original accounts
• are now the statutory accounts
• are prepared as they were at the date of the original accounts

Please note both original and amended accounts will remain at Companies house i.e. anyone like a supplier, lender or HMRC will have access to both set of accounts.

Sometimes you may wish to amend only a part of the accounts, for example in case you missed to add a note to accounts or incorrect information was mentioned in a note. In that case you can only send a note stating clearly what has changed along with a copy of the original accounts. This is a better idea than sending a full set of amended accounts as it will save effort on the part of the future reader to compare the two accounts to find the amendment.

Where to send the documents?

Companies registered in England and Wales have to send their accounts to Cardiff.

Companies House
Crown Way
Cardiff CF14 3UZ

Lastly, Companies house can also send an acknowledgement of receipt of documents, if you enclose a stamped self-addressed envelope and a copy of covering letter.

Source: Gov.uk link

Check out new HMRC tool to check `how` to register for self-assessment [link].

You must tell HMRC by 5 October after the end of the tax year, if you need to send a tax return and you have not sent one before.

Employment allowance was introduced from 6th April 2014.

Basic guidance

Who cannot claim Employment Allowance

You cannot claim if both of the following apply:

• you’re a company with only one employee paid above the Class 1 National Insurance secondary threshold
• the employee is also a director of the company.

Practice issue

1. An employee starts mid year making the employer eligible for Employment allowance. We need to make the claim and the claim will start from the beginning of the year. see link with examples.

2. An employee leaves mid year making the employer ineligible for Employment allowance. Company can still claim employment allowance for the current tax year but stop from next year. see link

3. Employment allowance cannot be used against Class 1A (P11d) or Class 1B (PAYE Settlement Agreement )National Insurance Contributions liabilities. _link

There is no pro-rata of employment allowance, either you get it for full year or not.

A must read publication for all HMRC agents doing payroll Employer Bulletin.