Tax Consequences of Audit Exemptions

According to the new rules there will be more than 100,000 small companies from the requirement to have an audit may raise tax issues. The new audit threshold rules, which come into effect on October 1 and were announced by the Department of Business Innovation and Skills (BIS) earlier in September, mean that small businesses will not need to subject their accounts to an audit if they meet two out of the three qualifying criteria for small company accounts:

  • Fewer than 50 employees
  • Balance sheet total: no more than £3.26m
  • Turnover below £6.5m

The extension of the audit exemption (which BIS reckons will apply to more than 100,000 companies) was welcomed by business groups. However, according to tax and audit experts, when deciding whether to take advantage of the exemptions, directors must remember that “no matter what they decide to do, the company accounts must still comply with the requirements of tax legislation.

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http://www.accountingweb.co.uk/article/audit-exemption-tax-consequences/531777

If you are looking for an auditor, contact KVS Accountants and Registered Auditors on 020 7731 6131. We are auditors in Wimbledon, Hammersmith, Kensington, Richmond, Fulham, Wandsworth, Putney and Battersea.

 

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