Corporation Tax Online - update

Simplified online account filing options are now available for small firms described as "Micro Entities" by HMRC (see below). Improvements were first made in October 2104 by amendments to existing solution. From November 2014 small firms have been given the option to submit 'basic mirco-enitiy' accounts to Companies House. These are simplied financial starements such as profit & loss, balance sheets etc which can be self submitted using HMRC's on line system

HMRC Starement :

"HMRC already has free filing software that is designed for unrepresented Corporation Tax customers with straightforward affairs. HMRC are making improvements to this free product to allow micro-entities the option to file simplified accounts if they choose.

From October 2014 micro-entities will have had the option to file simplified accounts to HMRC and also companies will soon be able to send basic micro-entity accounts to Companies House using HMRC’s filing software.

What are Micro-entities ?

HMRC’s online filing software allows certain companies to choose to prepare and publish simplified financial statements (profit and loss account and balance sheets) if they meet the following criteria:

• turnover £632,000 or less
• balance sheet where assets total £316,000 or less
• average number of employees in the year is 10 or less

To qualify as a micro entity, companies must meet 2 or more of the criteria above.