Private company regulations set to change

27 March 2008 In Accountancy

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Accountants working with small businesses have been advised to make sure they are ready for changes to legislation relating to private companies scheduled to come into force next month.

The recommendation came from Clive Lewis, head of medium issues for the Institute of Chartered Accountants in England and Wales, who said that there are two major changes private companies have to be aware of.

First on the list of things they need to consider is the cut in the amount of time they have to file their accounts at Companies House.

"This period will reduce to nine months for accounting periods beginning on and after April 6th 2008," explained Mr Lewis.

From the same date it will no longer be compulsory for private businesses to have a company secretary and those currently in post may resign from then onwards.

However, Mr Lewis added: "All the Companies House documents they currently deal with still have to be completed and filed."

The changes come just weeks after the Federation of Small Businesses claimed its members had lost confidence in the government because its policies had led to more red tape and higher corporation tax.

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