The Companies (Accounts and Reports) (Amendment and Transitional Provision) Regulations 2024

Explanatory Note

(This note is not part of the Regulations)

These Regulations amend the Small Companies and Groups (Accounts and Directors’ Report) Regulations 2008, the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, the Companies Act 2006 and the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008. They also make consequential amendments.

Part 2 reduces the information required to be included in the directors’ report.

Regulation 4 removes the requirement for small companies to include in their directors’ report disclosure on the employment of disabled persons.

Regulation 5 removes the requirements for large and medium-sized companies to include in their directors’ report information on financial instruments, miscellaneous provisions, disclosure on the employment of disabled persons and their engagement with employees, suppliers, customers and others.

Regulations 6 and 7 make consequential amendments.

Part 3 increases the turnover and balance sheet thresholds to determine the size of a company for reporting and audit purposes.

Regulation 3 is a transitional provision for the amendments made by Part 3.

Regulation 9 increases the thresholds for a company to qualify as small, including the thresholds for parent companies and groups to fall within the small companies regime. It also increases the thresholds for micro-entities.

Regulation 10 increases the thresholds for medium-sized companies, including the thresholds for parent companies and groups to fall within the medium-sized companies regime.

Regulation 11 extends the increased thresholds for micro-entities and small and medium-sized companies to limited liability partnerships.

A full impact assessment of the effect that this instrument will have on the costs of business and the voluntary sector and community bodies is annexed to the Explanatory Memorandum which is available alongside this instrument on www.legislation.gov.uk. Copies may also be obtained from the Department for Business and Trade at Old Admiralty Building, Admiralty Place, London, SW1A 2DY.