THE European Commission on 26th February announced it would abolish accounting rules that oblige “micro enterprises” – those with fewer than ten staff and turnover below £880,000 a year – to submit audit reports to national authorities.
Cutting the red tape will save about £5.6 billion a year in running costs incurred by Europe’s smallest businesses – as much as £1,070 a business, the commission said.
The move requires endorsement from MEPs and EU ministers, but the proposal is part of the EU’s economic recovery plan and is not expected to be challenged.
David Frost, director general of the British Chambers of Commerce, said: “With 75 per cent of the regulatory burden on business originating in Brussels, this will be good news for hard-pressed small firms.
“The cumulative cost of regulation on business now stands at £66bn, so the UK government should go further by announcing a moratorium on harmful extra legislation.”
source: The Scotsman