Telford‑based Turas Accountants says new changes to the way thousands of small businesses report their finances to the taxman could just be the start of things to come.

Earlier this year, HMRC introduced tighter rules on how directors of close companies declare and report dividends.

Now Helen Columb, owner of Turas, says businesses should start preparing for further changes which look set to be introduced over the next 18 months.

Helen said: “Close companies typically have five or fewer directors or shareholders and would include most small, family-owned and owner-managed private limited companies.

“Changes to the way dividends were reported to the taxman came into force in the last tax year requiring more information from company directors, and the government has already consulted on a raft of further changes.

“It wants close companies to provide HMRC with details of transactions between the company and directors or shareholders, including cash withdrawals, loans, debts, dividends and distribution and transfer of assets to and from the company.

“On top of this, from April 2028 micro-entities and small companies will have to file a copy of their profit and loss account with the taxman, although they can opt out of it being published on the public register.

“These are all significant changes which will increase the reporting burden on huge numbers of small companies, because around 80 per cent of UK companies fall into the SME or close‑company category.”

Helen said the changes also highlighted an ongoing disparity between limited companies and traditional professional partnerships.

“Partnerships – including many older solicitors’ firms and accountancy practices – still won’t have to publish accounts at all,” Helen said. “Limited companies, even very small ones, continue to face a higher level of disclosure. That imbalance remains, regardless of the recent update.”

Turas is encouraging directors to review how they extract income from their business, ensure dividend processes are fully compliant and stay informed about upcoming changes.

“Directors shouldn’t assume the regulatory landscape is now settled,” Helen added. “The first phase has already arrived, and professional bodies are signalling that more could be on the way. Staying ahead of compliance now and getting expert advice and support will make any future changes far easier to manage.”

Turas, which is based in Hall Court in Telford Town Centre, started trading in 2013 as Columb & Gosling Accountants.  It changed its name to Turas Accountants six years ago under Helen’s leadership.

To find out more about Turas visit https://turasaccountants.co.uk/

Helen Columb of Turas Accountants.