Cut red tape for non-trading companies

My partner is the secretary of a company set up to own the freehold of a block of flats. It doesn't trade, and there's one share per flat. Every year she has to submit a set of accounts (the same every year, except the dates have to be changed). She also has to submit an annual report. Why can't the Companies Act be changed to only require non-trading companies to submit accounts or annual reports IF THERE IS A MATERIAL CHANGE IN CIRCUMSTANCES

Why is this idea important?

My partner is the secretary of a company set up to own the freehold of a block of flats. It doesn't trade, and there's one share per flat. Every year she has to submit a set of accounts (the same every year, except the dates have to be changed). She also has to submit an annual report. Why can't the Companies Act be changed to only require non-trading companies to submit accounts or annual reports IF THERE IS A MATERIAL CHANGE IN CIRCUMSTANCES

What happened to Micro Entities?

The EU was proposing the concept of a micro entity (a small turnover limited company) that would escape much of the regulation governing limited company reporting, e.g. not delivering accounts to Companies House.  This concept seems to have stalled.

Why is this idea important?

The EU was proposing the concept of a micro entity (a small turnover limited company) that would escape much of the regulation governing limited company reporting, e.g. not delivering accounts to Companies House.  This concept seems to have stalled.

Encourage young entrepreneurs, don’t hold them back

Section 157 of the 2006 Companies Act bans under 16s from being the director of either a company or a charity.  

Whilst I appreciate that this is a law that only directly affects a very small minority of people, they are a very important minority, and it is thus in all out interests that we repeal it.

These people are the cream of the next generation, potential business or community leaders of the future.  Their talent and drive should be nurtured, encouraged and allowed to flourish.  Holding them back to the level of less able youngsters has quite the opposite effect.  

If we want this country to have a future, we should be encouraging our most able and driven youngsters to use their talent to its full potential.  The removal of unnecessary barriers, such as this draconian piece of legislation, is essential to doing this.

Just because this law only restricts a very small minority is not an excuse for its existence, particularly as the very people it is restricting are the same people that we will need to help get this country out of the mess it is in.

A government which cares about the future of this country would repeal this law without hesitation.

Why is this idea important?

Section 157 of the 2006 Companies Act bans under 16s from being the director of either a company or a charity.  

Whilst I appreciate that this is a law that only directly affects a very small minority of people, they are a very important minority, and it is thus in all out interests that we repeal it.

These people are the cream of the next generation, potential business or community leaders of the future.  Their talent and drive should be nurtured, encouraged and allowed to flourish.  Holding them back to the level of less able youngsters has quite the opposite effect.  

If we want this country to have a future, we should be encouraging our most able and driven youngsters to use their talent to its full potential.  The removal of unnecessary barriers, such as this draconian piece of legislation, is essential to doing this.

Just because this law only restricts a very small minority is not an excuse for its existence, particularly as the very people it is restricting are the same people that we will need to help get this country out of the mess it is in.

A government which cares about the future of this country would repeal this law without hesitation.

Overhaul The Companies Act And Various Revisions For SME’s

Remove the requirement for SME's that are largely or principally owner-managed to have an annual accounts audit.

Remove the requirement for SME's that are largely or principally owner-managed to have to make an annual return to Companies House.

Remove the requirement for SME's that are largely or principally owner-managed to have to file annual accounts.

Remove the requirement for SME's that are largely or principally owner-managed to have to have their information publicly displayed.

 

Why is this idea important?

Remove the requirement for SME's that are largely or principally owner-managed to have an annual accounts audit.

Remove the requirement for SME's that are largely or principally owner-managed to have to make an annual return to Companies House.

Remove the requirement for SME's that are largely or principally owner-managed to have to file annual accounts.

Remove the requirement for SME's that are largely or principally owner-managed to have to have their information publicly displayed.

 

Companies Act – Unnecessary Forms

The Companies Act 2006 has created a significant number of new forms, many of which appear to have little purpose. For example, Form CC04 – Statement of company's objects. Other than the company's number and name , this form has just a choice of three tick boxes to complete: 'addition to', 'removal of' and 'alteration to'.

Under the 1985 Companies Act it was only necessary to submit a special resolution and the new or revised memorandum and articles. This still has to be done under the 2006 Companies Act, but this pointless form also has to completed and filed. According to the notes on the form the amendment to the objects of the company is not effective until entry of the form on the Register.

The form cannot be filed using the Companies House WebFiling service. It can only be filled in on-line for printing. It cannot be saved or emailed. It still has to be signed on behalf of the company and sent in paper form to Companies House.

All these new forms should be reviewed to see if they are really necessary, and those that are not should be abolished, to cut down on needless red tape.

Why is this idea important?

The Companies Act 2006 has created a significant number of new forms, many of which appear to have little purpose. For example, Form CC04 – Statement of company's objects. Other than the company's number and name , this form has just a choice of three tick boxes to complete: 'addition to', 'removal of' and 'alteration to'.

Under the 1985 Companies Act it was only necessary to submit a special resolution and the new or revised memorandum and articles. This still has to be done under the 2006 Companies Act, but this pointless form also has to completed and filed. According to the notes on the form the amendment to the objects of the company is not effective until entry of the form on the Register.

The form cannot be filed using the Companies House WebFiling service. It can only be filled in on-line for printing. It cannot be saved or emailed. It still has to be signed on behalf of the company and sent in paper form to Companies House.

All these new forms should be reviewed to see if they are really necessary, and those that are not should be abolished, to cut down on needless red tape.

No corporation tax return for very small companies

For VAT registered very small companies (turnover £50k) who file their VAT online (a) provide them with the option to have PCTCT (profits calculated and used for determining corporation tax) based on the previous 4 quarters VAT returns, and (b) thereby eliminate the requirement to support and file a separate corporation tax return calculation and full statutory accounts.

In addition, for very small companies electing to continue to file the existing summary corporation tax return, an ultra simplified self assessment form and half  page guidance note should be introduced. 

Allow very small companies to use their accounting period as the tax period if it ends within 3 month of the tax period (currently, if the accounting period does not coincide with the tax period then two separate tax calculations need to be prepared each year using two different accounting periods and sets of accounts — just by reading this you can start to see just how unnecessarily overcomplicated and bureacratic filing is for very small companies).

Why is this idea important?

For VAT registered very small companies (turnover £50k) who file their VAT online (a) provide them with the option to have PCTCT (profits calculated and used for determining corporation tax) based on the previous 4 quarters VAT returns, and (b) thereby eliminate the requirement to support and file a separate corporation tax return calculation and full statutory accounts.

In addition, for very small companies electing to continue to file the existing summary corporation tax return, an ultra simplified self assessment form and half  page guidance note should be introduced. 

Allow very small companies to use their accounting period as the tax period if it ends within 3 month of the tax period (currently, if the accounting period does not coincide with the tax period then two separate tax calculations need to be prepared each year using two different accounting periods and sets of accounts — just by reading this you can start to see just how unnecessarily overcomplicated and bureacratic filing is for very small companies).

Companies Act re. administrators’ obligation to maximise Creditors return

Businesses in administration which have new managers and a sound business plan for a phoenix company and which employ more than, say, five people excluding participants should have some protection angainst their assets being sold off to the highest bidder UNLESS the highest bidder is committed, and enforced, to carry on the business as a going concern.  This would protect jobs and save benefits.

Why is this idea important?

Businesses in administration which have new managers and a sound business plan for a phoenix company and which employ more than, say, five people excluding participants should have some protection angainst their assets being sold off to the highest bidder UNLESS the highest bidder is committed, and enforced, to carry on the business as a going concern.  This would protect jobs and save benefits.