TaxCalc Accounts Production – No Deal and Deal
Whilst TaxCalc Accounts Production provides accounting formats for small and micro entity compliance needs, it does not provide formats for consolidated accounts for group companies and other complex entities. Therefore, we expect there will be no requirement for significant changes to our Accounts Production software in the event of the UK leaving the EU with or without a deal. Generally, any references to European Economic Area (EEA) will be defined as UK, EU or another EEA state.
Accounts Reporting in General – No Deal
If you are a company or agent acting for a company with more complex reporting requirements, you should be aware of the following in the event of a No Deal Brexit:
- Subsidiaries and parents of EU companies established in the UK will need to make themselves familiar with the exemptions in the Companies Act 2006 relating to accounting and reporting requirements which will no longer be extended to UK companies with parents or subsidiaries incorporated in the EU.
- Branches of EU companies established in the UK will become subject to additional requirements under the Overseas Companies Regulations, and after exit will be subject to the same accounting and reporting requirements as non-EU companies that have a branch here. The management of such branches should familiarise themselves with the additional reporting requirements that will be applicable to them.
- Audits of UK companies operating solely within the UK will be unchanged, but there will be additional requirements relating to the audits of UK companies operating cross-border, and to the provision of audit services cross-border.
For more detailed guidance from the Department for Business, Energy & Industrial Strategy, please see: Company Accounting and Audit - No Brexit Deal
Accounts Reporting in General – Deal
Whilst there is less information available in the event of a Deal, due to the consequences of the terms agreed, it has been reported there will be a prospective transition period to 31 December 2020, during which time reporting requirements and deadlines for changes will be communicated.
- UK companies will continue to use the Companies Act 2006
- The Companies, Limited Liability Partnerships and Partnerships (Amendment etc.) (EU Exit) Regulations 2018
- The Accounts and Reports (Amendment) (EU Exit) Regulations 2018
- UK companies with parents or subsidiaries in EU may be subject to additional reporting depending on status
- UK companies with an EU presence may be subject to IFRSs dependent on country requirements
- The EU Withdrawal Act 2018 will be used to correct deficiencies
- Additional audit requirements for UK companies operating cross-border (transitional period until December 2020)
We will continue to keep you updated, however please do contact us if you have any questions or concerns.