Tax Avoidance: Small Businesses
The question
To ask the Secretary of State for Business and Trade, what assessment his Department has made of the impact of the requirement in the Economic Crime and Corporate Transparency Act 2023 that micro-entities publicly file their profit and loss accounts on small businesses.
Answered by Justin Madders
The Department is currently engaging with stakeholders on proposed changes in filing requirements at Companies House, to ensure they strike the right balance between tackling economic crime and avoiding undue burden on business. In 2022, the department estimated that proposed changes to the small accounts regime, which included among other policies the requirement for small and micro-entities to file profit and loss accounts, would result in one-off familiarisation costs to business of £3.2 million in the first year, or £0.4m annual net direct costs to business over 10 years. Recurrent costs from profit and loss account filing were estimated to be negligible.
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