An opt-out allowing European Union (EU) small businesses turning over less than €1m (£865,000) per year to stop filing annual accounts has been proposed by the European Parliament’s legal affairs committee.
It has passed amendments to a proposed reshaped ‘directive on the annual accounts of certain types of companies as regards micro-entities’ which would allow member states to abandon these filing duties.
The opt-out would apply to companies with a balance sheet under €500,000 and/or an average of 10 employees during a particular financial year, which the committee thinks makes up 5.4 million of the EU’s 7.2 million companies.
They would still have to keep records of their transactions however, and national EU governments could still ignore the opt-out and order them to file.
Orange & Gold welcomes this wholeheartedly as it would reduce needless compliance on small contractor businesses and reduce running costs for the contractor. "Bring it on" we say.