Big change to Company Law on the horizon
The white paper on reform to the Company Register, sets out a series of adjustments for businesses for 2023 to “safeguard our national security and reduce the economic and social costs of fraud,” the white paper laid out that small and micro businesses will potentially have to publicly file their profit and loss accounts which they are exempted from at present, having only to file a simplified balance sheet.
Most of our clients are happy with this potential change as it makes their business more transparent and easier to keep suppliers onside. Those who value their privacy however have strong objections and are considering their options before the reforms kick in.
The only real option available is to disincorporate, which means transferring the business assets to one or more individuals as a Sole Trader or a Partnership. In that way, public filing of accounts is not required. This is a big step and not many will want to do it.
The white paper can be viewed here: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1060726/corporate-transparency-white-paper.pdf