Small businesses need to make sure they are prepared for a new raft of legislation coming into force on 6 April, the Institute of Chartered Accountants in England and Wales (ICAEW) has warned.
Public companies are to remain relatively unscathed as some of the changes will only affect private companies. For example, the period after the end of annual accounting periods in which they need to file their accounts with Companies House will be reduced from 10 months to nine.
Another change that won’t affect public companies is that the post of company secretary will be optional for private companies from 6 April. “This change will make it easier for one person to run his or her own company alone,” commented Clive Lewis, head of medium issues at the ICAEW.
Lewis also reminded small companies of changes that have already come into force. One of these is the new regulation which stipulates that the company registration number, registered office and country of registration must be stated on company websites, order forms and all correspondence, including emails, which are sent on behalf of the company. Failure to comply could land small businesses with a hefty £1000 fine.
Another change which came into place last year means that loans of up to £10,000 can be made to directors without shareholder approval.
© Crimson Business Ltd. 2008