Byers set to raise audit threshold – Details, reaction and commentary

Click here to read this morning’s news story giving all the details, and scroll down to see reaction from the Small Practitioners Association, the Federation of Small Businesses, a business man affected by the change and the Chamber of Commerce.

This page will be updated regularly throughout the day, and will carry details of Byer’s speech this afternoon.

Peter Mitchell, chairman, Small Practitioners’ Association:

‘This measure was thebasis of all our arguments to the DTI. We are extremely pleased to hear the DTIhas taken action on this issue.

‘It will result in dramatic restructuring for the need for audit work. Smallprivate businesses will be able to drop out of the auditing net as they will nolonger be required to undergo annual audits. It was imposed on small businessesas a bureaucratic exercise causing cost rather than benefit.

‘It is good news as long as this announcement will be a two-tier process andwon’t have to be reviewed again.This is probably the biggest single change since the late 1960s.Because it is a dramatic change there will be a need for reorganisation withinthe profession.’

David Franklin, David Franklin Limited, air freshener manfacturer:

‘We welcome the announcement being an SME. It will reduce our accountancy billsand any reduction in cost to our business is welcomed. We also welcome any measures of future reduction. I think with this measure ourbusiness will just make the exemption threshold from the annual audit.’

Federation of Small Business spokesman:

‘This isn’t new – Byers was talking last June about whether to go for 1m or 4.8m. When the government feels that it is under pressure, it makes an announcement to show that it is cutting through red tape.

‘ Hopefully by July we will see some decision. Further delay will mean members will again be facing uncertainty over whether they should take on extra staff and invest in new areas or comply with new regulations. But, it is good to know that the issue is back on the agenda.’

Chamber of Commerce spokesman:

‘This is a step in the right direction. We would like to see the Government to go full hilt.and the level raised at least to the EU threshold of 4.2m.

‘This is something that Byers announced last year in Glasgow and since then we have been happy to give input into the consultation process.’

Related reading