The UK is planning to simplify reporting rules for small businesses by removing redundant requirements, aiming to help them cut costs and operate more efficiently, according to an

announcement from the government on Monday.

New legislation will be introduced to implement these changes, including raising the size threshold for small companies, so they are not burdened with unnecessary reporting obligations. Business Minister Jonathan Reynolds outlined these plans in a written statement to parliament.

This initiative coincides with the publication of a consultation document on the UK's new industrial strategy and the welcoming of global business leaders to a major investment summit in London.

Reynolds also emphasized the government's commitment to making it easier for companies to relocate to the UK. He mentioned that a consultation will be held on a new corporate re-domiciliation regime, aimed at simplifying the process for businesses moving their place of incorporation to Britain.

"My department will introduce legislation by the end of the year that will save companies £240 million annually by eliminating redundant reporting requirements and raising the monetary size thresholds for micro-entities, small, and medium-sized businesses. Additionally, we will make technical adjustments to the UK's audit framework," Reynolds stated.

These changes are expected to benefit up to 132,000 companies, allowing them to move into a smaller size category with lighter accounting and reporting obligations more suited to their scale, he added. Photo by Basher Eyre, Wikimedia commons.