Micro entities will be required to file public P&Ls on Companies House

[sreed]

On balance, I think it's fair.

As an individual who is a Director, I would prefer not to have to make my P&L public.

But as a bystander, it's only right that with all the advantages of a ltd.co.wrapper (tax, limited liability, etc.) you have proportionate obligations that salaried people or sole traders don't have.

At least for micro-entities, I would hope that they limit it to revenue-costs-profit rather than a line by line breakup of revenue/costs.

[JustKeepSwimming]

Looking at the comments on the AccountingWeb article, the main concern seems to be that a one-person company listing turnover is equivalent to a permie listing their salary. So, it's useful to look at the Norwegian system.

I acknowledge that point but don't really think it's valid. You're a company so you act like a company.

[hobnob]

Don't Norway make all salaries public record?

Apparently so:
Norway: The country where no salaries are secret - BBC News

An interesting point there is that you have to log in to do a search, and anyone else can see who's searched for them. So, you'd know who's being nosy!

Looking at the comments on the AccountingWeb article, the main concern seems to be that a one-person company listing turnover is equivalent to a permie listing their salary. So, it's useful to look at the Norwegian system.

[JustKeepSwimming]

I never really understood why they didn't have to. They really ought to standardise accounts too, at least a summary page.

Don't Norway make all salaries public record?

[hobnob]

This is all part of the Economic Crime and Corporate Transparency Act.

There's a previous article from AccountingWeb about the act:
Companies House given new powers to tackle fraud | AccountingWEB
I think a lot of that sounds sensible, i.e. verifying ID for directors and major shareholders. It seems absurd that someone else can register their company at my address without me knowing anything about it!

Regarding the profit and loss accounts, I read an article from Experian a while back:
What is a Business Credit Score and how to improve - Experian UK

At the end of every financial year all companies, whether you’re a SME sole trader or a limited company, must file their accounts, Company Tax Return or Corporation Tax with HM Revenue and Customs (HMRC). It’s important to file the accounts fully rather than submitting abbreviated or micro entity accounts. Though it might extend the process, filing the full accounts on time and in line with guidelines can lead to a better company credit rating in the long run.

I have wondered whether that would be worthwhile. If nothing else, it might be a silver lining in the new legislation.

[sreed]

https://www.accountingweb.co.uk/busi...es-to-go-ahead

It's not clear what level of detail is expected but this is definitely a big shake up if it comes to pass.