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MEPs vote to slash red tape for small firms (10th March, 2010)

March 10, 2010 at 5:30 pm Leave a comment

Small companies may soon no longer have to file annual accounts, under a proposal that won the support of the European Parliament this week. MEPs in Strasbourg voted in favour of a plan to reduce red tape by exempting small firms from EU accounting rules. The waiver would apply only to so-called ‘micro-entities’, in other words, companies with less than ten employees or with an annual turnover of less than €1 million.
‘Small companies often feel like they’re drowning in paperwork, so this will free them up to be more competitive,’ said Irish MEP Marian Harkin. ‘We’re so often involved in implementing new laws in Europe – it’s a good day’s work when we can lift some of the compliance issues,’ she added.
Gay Mitchell MEP also welcomed the move to minimise the ‘unnecessary cost and expense’ to small traders. ‘These rules are of course necessary for larger firms, but it’s about time we made life easier for individuals and small businesses,’ he said.
A European Commission study claims that even though small firms will still be required to keep records of their transactions for tax purposes, the new rule could save companies an average of over €1,100 a year.
The proposal still needs to be approved by EU ministers before it becomes law, and then it will be up to each member state to decide whether or not to grant small companies the exemption.

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