Tax & Accounting News

Companies Act 2006: Change in Filing Deadlines

01/10/2008

The Companies Act, which received Royal Assent on 8 November 2006, is the longest ever act to be passed by Parliament.

Parts of the Act came into force on 1 October 2007 and further measures on 6 April 2008. The remaining sections will take effect from 1 October 2009 – rather than 1 October 2008 as originally scheduled – because Companies House could not guarantee that the computer system changes necessary to accommodate the new procedures would be in place in time.

Key changes affecting filing deadlines came into effect on 6 April:

• a reduction in the time limits for private companies to file their accounts from ten months to nine months
• a similar reduction, from seven months to six months, for public limited companies.

These changes affect accounting periods beginning on or after 6 April 2008. The ten month/seven month rule will still apply to accounts up to and including 31 March 2009.

Increases for company size criteria for financial years beginning on or after 6 April 2008 also took effect from that date:

• small companies: the turnover threshold rose from £5.6m to £6.5m and the balance sheet total from £2.8m to £3.26m
• small groups: the turnover threshold increased from £5.6m net (£6.72m gross) to £6.5m net (£7.8m gross) and the balance sheet total from £2.8m net (£3.36m gross) to £3.26m net (£3.9m gross)
• medium companies: the turnover threshold rose from £22.8m to £25.9m and the balance sheet total from £11.4m to £12.9m
• medium groups: the turnover increased from £22.8m net (£27.36m gross) to £25.9m net (£31.1m gross) and the balance sheet from £11.4m net (£13.68m gross) to £12.9m net (£15.5m gross).

The medium-sized group exemption was also abolished and the exemption now only applies to small groups.

Additional provisions have also been introduced to ensure that there remains a general duty to keep accounting records. This is to ensure that businesses have the right information with which to make informed decisions and to prepare accounts compliant with the Companies Act and, where relevant, with International Accounting Standards.

“Accounting records” is a broad term and there is no specific definition, as records may differ depending on the nature and complexity of the business. However, whatever form the records take, they must be kept for three years by private companies and six years by public companies, although it must be pointed out that for HM Revenue & Customs purposes, the accounting records must be kept for six years.

If a company has failed to keep adequate accounting records, it remains a criminal offence for every officer of that company.

Please do not hesitate to contact us for further information.

 

Print page