Advertisement

We need your help now

Support from readers like you keeps The Journal open.

You are visiting us because we have something you value. Independent, unbiased news that tells the truth. Advertising revenue goes some way to support our mission, but this year it has not been enough.

If you've seen value in our reporting, please contribute what you can, so we can continue to produce accurate and meaningful journalism. For everyone who needs it.

EU directive will mean less 'red tape' for small business

Finance ministers adopt new rules which will allow each EU member to exempt small businesses from publishing annual accounts.

EUROPEAN FINANCE MINISTERS have agreed to adopt new rules which aim to reduce the administrative burdens of setting up a small business.

The directive, adopted at their summit in Brussels yesterday, will allow small companies to be exempted from publishing annual accounts in a bid to lessen their bureaucratic costs and encourage small firms to take on more staff.

The rules will apply to companies who have an average of ten employees or less over the course of an accounting year, with a balance sheet of under €350,000 and a net turnover of €700,000.

To qualify for the exemption, companies must satisfy at least two of those criteria.

The new rules will not overrule national obligations to keep records showing business transactions, but should lessen the administrative costs of setting up a small business.

Ireland has not yet indicated whether it plans to sign up to the optional directive.

Readers like you are keeping these stories free for everyone...
A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation.

Close
6 Comments
    Install the app to use these features.
    Mute Tony Skillington
    Favourite Tony Skillington
    Report
    Feb 22nd 2012, 3:01 PM

    This would be great if we did sign up. Our company would save three or four thousand euro a year by not having to submit accounts…money I’d gladly reinvest in even part time employment for someone.
    Over to you Mr Noonan…

    45
    Install the app to use these features.
    Mute Chuck Farrelly
    Favourite Chuck Farrelly
    Report
    Feb 22nd 2012, 5:16 PM

    Exactly, small businesses aren’t going to hoard any money they make – they’ll put it all back into circulation one way or another

    14
    Install the app to use these features.
    Mute jrbmc
    Favourite jrbmc
    Report
    Feb 22nd 2012, 3:12 PM

    Yea…” sign the contract” ! “Sign the contract” Enda !!!

    22
    Install the app to use these features.
    Mute SeanNorris
    Favourite SeanNorris
    Report
    Feb 22nd 2012, 6:31 PM

    this is good news. without knowing the. details it appears that it will have 3 benefits. it will lift most small companies out of the requirement for an audit. this will translate to a cost saving probably not in the magnitude tony expressed but a saving nevertheless. The other benefit is that it will remove from public record your accounts. as regards implementation there is a companies bill somewhere in the govt. work program so hopefully this will find its way onto it.

    3
    Install the app to use these features.
    Mute William Grogan
    Favourite William Grogan
    Report
    Feb 22nd 2012, 10:08 PM

    Great news.

    2
    Install the app to use these features.
    Mute Irish Architecture
    Favourite Irish Architecture
    Report
    Feb 23rd 2012, 1:15 AM

    This would be a wonderful development. It is ridiculous to be paying accountants to show the govt you don’t need to pay tax. It’s an utter waste of money and a heavy burden on small business.

    1
Submit a report
Please help us understand how this comment violates our community guidelines.
Thank you for the feedback
Your feedback has been sent to our team for review.
JournalTv
News in 60 seconds