Research and analysis

The Companies (Accounts and Reports) (Amendment and Transitional Provision) Regulations 2024 IA: RPC opinion (green-rated)

Regulatory Policy Committee opinion on the Department for Business and Trade’s impact assessment (IA) which, although titled 'The Companies (Non-Financial Reporting) (Amendment) Regulations 2024', is in respect of The Companies (Accounts and Reports) (Amendment and Transitional Provision) Regulations 2024.

• From: Regulatory Policy Committee
• Published: 19 December 2024

Documents

RPC Opinion: The Companies (Accounts and Reports) (Amendment and Transitional Provision) Regulations 2024 IA

PDF, 145 KB, 7 pages

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Details

The legislation reduces reporting burdens on companies by increasing the turnover and balance sheet criteria by approximately 50%. This adjustment helps determine whether a company is classified as a micro-entity, small, medium-sized, or large business for reporting and audit requirements under the Companies Act 2006. The Government hope that the legislation will see many companies benefit from lighter-touch financial and non-financial reporting requirements; and by removing several reporting requirements from directors’ reports (part of company annual reports), which overlap with other reporting requirements or provide little material value to investors and other users of company reporting.

The IA provides sufficient level and quality of evidence and data to support the estimated direct impact on business (-£240.2 million).  The assessment of impacts on small and micro businesses is sufficient, and the IA provides a good plan for monitoring and evaluation.

Published 19 December 2024