The interim results of the Company and Commercial Law Red Tape Challenge were revealed this week indicating a welcome shake-up of business regulations, according to Jo Swinson, Parliamentary Under Secretary of State for employment relations, consumer and postal affairs.
Half of the 115 existing regulations on the day-to-day running of a company – including the preparing and filing of accounts – are expected to be scrapped, merged or simplified as a result of the latest review.
The primary aim of the report is to reduce redundant legislation and improve the efficiency of remaining regulations, ensuring they are easier to understand for business owners.
"The Companies Act is understandably a complex bit of law. However, there are many areas where this has resulted in companies unnecessarily being tied down by red tape," said Swinson.
"Businesses told us through this bureaucracy cutting exercise just how time consuming some of the form filling is and how the rules they have to abide by are completely redundant.
"We have heard them loud and clear and are now taking action."
There have been additional proposals of late for companies with less than ten employees – micro-businesses – to be freed of some red tape by removing existing accounting requirements.
Under the proposal, the nation’s reported 1.2 million micro-businesses would be allowed to provide greatly reduced annual accounts, including shortened balance sheets and profit and loss accounts, with a continued exemption from the requirement to file the profit and loss account.