IFRS for SMEs are designed for entities without public accountability that publish general-purpose financial statements.

IASB has released the third edition of the IFRS for SMEs Accounting Standard, marking the completion of its second comprehensive review. The revised edition enhances alignment with full IFRS Accounting Standards while maintaining a simplified structure. The below targeted modifications have been made to ensure the standard remains proportionate and user-friendly for entities with limited resources.

In addition to the major revisions in Section 23 Revenue from Contracts with Customers to align with IFRS 15, the IASB has postponed aligning lease accounting with IFRS 16 Leases, deferring it to a future review.

Effective date

The revised IFRS for SMEs Accounting Standard is effective for annual reporting periods starting on or after 1 January 2027, with early adoption permitted.

How we can help

Our expert financial accounting advisory teams bring practical insights and global experience to support your needs. Feel free to contact us for more information.

Making tax digital (MTD) is a tax administration strategy that requires self employed individuals and landlords to keep digital records and send quarterly updates (unadjusted summaries of income and expenses) to HMRC via approved software.

The goal of MTD is to enhance record-keeping and help reduce the tax gap by ensuring accurate tax submissions. According to HMRC, a significant portion of the tax gap —amounting to £5 billion —results from errors and poor record-keeping.

MTD start date and income thresholds

MTD will be implemented in phases, with the start date depending on the taxpayer's combined income from self-employment and/or property.

(*) The income thresholds are based on total combined turnover (not profit) from self-employment and/or property income. Personal income from other sources like employment (PAYE), dividends, or bank interest does not count towards MTD mandation.

Quarterly updates

Quarterly updates to HMRC will follow the tax year's start date of 6 April, but individuals can choose to align updates with the start of a month, like 1 April, if preferred. The deadlines for quarterly updates will be 5th following the end of the relevant quarter. See below.

Year-end final declaration

At year-end, clients finalize their tax position through a quicker digital return, incorporating data submitted during the year and auto-populated info from HMRC. Any personal income not held by HMRC (e.g., dividend income) is added at year-end. Tax and accounting adjustments can be made at any time before the final "declaration," confirming the information is accurate and complete.

MTD software

All mandated taxpayers must use MTD compatible software (or a digitally linked set of compatible software) to: (1) keep digital records; and (2) submit quarterly updates to HMRC. See the link for MTD-compatible software details

Early participation in MTD testing phase

Individuals can choose to join the MTD testing phase early (now), allowing them to get acquainted with the system before it becomes mandatory in 2026.

Get support

Apex Global Consulting Services helps clients comply with MTD by selecting compatible software, maintaining digital records, submitting quarterly updates, and finalizing year-end returns. We also provide training to ensure a smooth transition ahead of the 2026 mandate. Contact us to help guide you through the process with ease.

Saudi Arabia’s Green Financing Framework sets a regional benchmark for integrating sustainable finance with national development priorities. By bridging the gap between environmental commitments and capital markets, it unlocks investment in green infrastructure and demonstrates how oil-rich nations can lead in the fight against climate change.

Discover the core objectives and transformative impact of the framework in the attached file. 

Are you aware of new company thresholds introduced by The Companies (Accounts and Reports) (Amendment and Transitional Provision) Regulations 2024 that are effective from 5 April 2025?

These Regulations increase the financial thresholds that define company sizes – micro, small and medium sized - thereby reducing their reporting burdens by approximately 50% while also simplifying Directors' Report requirements to streamline disclosures.

The table below outlines the new size thresholds, which apply if a company or group (including limited liability partnership) meets any two out of three qualifying conditions in a financial year.

To determine size, companies or groups must meet qualifying conditions for two consecutive years. Similarly, failing to meet them for two years results in a loss of classification. These Regulations include transitional provision that allows companies and LLPs to apply the new thresholds to the previous financial year when determining size for a year beginning on or after 6 April 2025. This enables businesses to benefit from the threshold uplift immediately, as part of the above two-year rule.

How will these changes impact businesses?

The new regulations are expected to shift around 113,000 companies and LLPs to the micro-entity category, 14,000 to small, and 6,000 to medium-sized. Businesses moving to a lower size category will benefit from reduced reporting and audit requirements. Below is a summary of the changes when transitioning between company size categories.

Transitioning from small to micro

Micro-entities prepare a simplified balance sheet with less detail than a standard small company account. Companies moving from small to micro are exempt from filing a directors’ report and are not required to submit a profit and loss statement to Companies House. However, if your company was audited as a small entity, it may still need an audit as a micro-entity if required by your articles of association or requested by shareholders. For more information, refer to Companies House requirements.

Transitioning from medium to small

Small companies are exempt from having their accounts audited (unless part of a group) and from producing strategic report. Small companies can choose to submit a director’s report and profit and loss account to Companies House, as well as file abridged accounts.

Abridged accounts, which require unanimous approval from all company members, include a simplified balance sheet and optional simplified profit and loss account and director’s report. Filing abridged accounts limits the amount of company information publicly available at Companies House.

Transitioning from large to medium

Medium-sized companies can take advantage of exemptions from certain Strategic Report requirements, including a Companies Act 2006 Section 172(1) statement on how directors have had regard to stakeholder and other interests.

A medium-sized company has the option to prepare its accounts in accordance with specific provisions designed for medium-sized companies. Additionally, it can opt to submit simplified information to Companies House.

Changes in Directors’ Report

The Regulations also removes redundant or low-value reporting requirements in the Directors' Report, as outlined in Schedule 7 of the Large and Medium-Sized Companies and Groups (Accounts and Reports) Regulations 2008 and the Small Companies and Groups (Accounts and Directors' Report) Regulations 2008.

Large and medium-sized entities will no longer be required to include in their Directors’ Report information about:

1. financial instruments;
2. important events that have occurred since the end of the financial year;
3. likely future developments;
4. research and development;
5. branches outside the UK;
6. the employment of disabled people (this requirement is also being removed for small entities);
7. engagement with employees; and
8. engagement with customers and suppliers.

Refer to Explanatory memo for further details.

The way forward

If changes in your company or group’s thresholds have affected its classification, and you're uncertain about the implications, seeking professional guidance is essential.

At Apex Global Consulting Services, we’re here to help. Get in touch with us at info@apexglobalconsultants.co.uk and one of our expert advisers will provide the clarity and support you need.

The cash flow statement is a vital part of a company's financial statements that offers essential insights into its liquidity, cash-generating ability, and overall financial stability. It is crucial for both shareholders & regulators including Financial Reporting Council (FRC) as it provides a transparent view of a company's financial health and liquidity.

The FRC continues to identify errors in cash flow statements and its various reviews examine many of the issues in their preparation; specifically issues around classification, incorrect inclusion of non-cash items, and inappropriate netting of cash flows.

Following are the common errors (also raised by FRC) in the cash flow statements.

Get support

Apex Global Consulting Services provides expert guidance to ensure accurate classification and compliance with financial reporting standards. Get in touch for any professional support.

A startup loan is a government-backed personal loan for individuals starting or growing a business. Unlike a business loan, it is unsecured and does not require collateral but you will need to pass a credit check. 

Key features of a startup loan

• Loan amount: Between £500 and £25,000 per partner, not exceeding £100,000 per business 
• Interest rate: Fixed at 6% per annum 
• Repayment period: 1 to 5 years 
• No early repayment fees 
• Free mentoring for the first 12 months

Eligibility criteria
To qualify for a startup loan, you must meet all the following requirements: 

• Reside in the UK 
• Be at least 18 years old 
• Plan to start a new business or have a business that is less than 36 months old 
• Business must be UK registered Company or / and registered in UK for tax purposes. 
• You must be living in UK at the time of your application and for the duration of your loan 
   

Application for startup loan 
These loans are typically provided by the British Business Bank via Start Up Loans and its delivery partners. 

Get support 
Securing funding while managing tax and accounting can be complex. Apex Global Consulting Services helps start-ups with financial planning, cash flow management, and tax efficiency. Get in touch to streamline your loan application and receive expert financial guidance for business growth.