Small car dealers and repair operations are set to save thousands of pounds after the Government unveiled new rules for company auditing. Ministers have raised the threshold for companies that need to be audited from £1m turnover to £6.5m a year.
By increasing the level, thousands of retailers will be exempt from auditing. This could also cut accounting bills for small companies with effect from January.
Chris Oakham, Sewells consultant, believes the move will mean two things. “First, small incorporated motor business with turnover between the two amounts will potentially save between £1000 and £3000 every year,” he says.
“Second, small unincorporated business with similar turnovers can save tax by incorporating. This is great news for owner drivers running small car sales businesses, bodyshops and workshops.”
It is great news for small businesses, adds Matthew Carrington, chief executive of the Retail Motor Industry Federation.
“By easing unnecessary restrictions life would be made far easier for small businesses and costs could be reduced. It would also allow them to get on with serving their customers,” he says.