MP calls for co-op accounting red tape removal

MP calls for co-op accounting red tape removal

MP calls for accounting and auditing red tape to be removed, putting them on par with other organisations

PROPOSALS to put smaller co-operatives’ accounting and auditing ‘on par’ with other companies has been put to Parliament.

Adrian Bailey MP has tabled a bill to highlight the difference between co-ops’ accounting, and that other types of organisation.

He is calling for:

  • The removal of the requirement for co-ops with a turnover of less than £5,000 to appoint lay auditors to scrutinise their accounts;
  • Increase the turnover threshold at which co-ops must apply full audit requirements, to £6.5m from £5.6m, putting them in line with other companies; and
  • Make the requirement on co-ops for an auditor’s report contingent on the amount of share capital raised by the co-op, rather than a turnover threshold

Bailey said in his speech to the house that the changes will give “further impetus” to the co-op business model, to help them achieve their “full potential”.

“I anticipate that these changes would benefit thousands of small co-operative societies around the country,” he said. The bill was supported in parliament, and will face its second reading in February 2017.

Ed Mayo, secretary general of Co-operatives UK, said that red tape held up smaller co-ops, and he was “delighted” Bailey had made the proposals.

“We look forward to seeing this bill move through parliament and, ultimately, make life easier for the thousands of small co-ops across the UK,” said Mayo.

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

Professional Services Why Professional Services Firms Should Ditch Folders and Embrace Metadata

10m

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

1y

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine

Accounting Firms Turn Accounts Payable into a value-engine

9m

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021

Making Tax Digital Digital Links: A guide to MTD in 2021

9m

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource