UK: budget 2009 - accounting and corporation tax simplification

Tucked away in yesterday's budget is something of interest concerning the European Commission's recent proposal to give Member States the option to exempt so-called 'micro entities' from the accounting requirements of the Fourth Company Law Directive. The proposal is referred to at para. 4.53 in the budget report where the Government briefly mentioned the outcome of its recent consultation on corporation tax simplification:

responses ... a summary of which will be published shortly, indicated little support for the options outlined and the Government will not pursue these. There was greater interest in simplifying accounting requirements, and BERR will draw on these responses when considering the scope to simplify accounting rules for micro companies under European Commission proposals. HMRC will consider whether any changes create scope to make simplifications to the tax calculations for micro companies".