However, the Institute of Chartered Accountants in England and Wales (ICAEW) last night cautioned that the decision would leave companies vulnerable to fraud, money-laundering and inaccurate tax bills. Michael Izza, chief executive of the ICAEW, said the body, which represents almost 130,000 accountants across the UK, is holding talks with the Department for Business, Innovation and Skills about its fears. We have outlined our concerns very strongly, particularly those regarding money-laundering, although there are other concerns. For example, trust in business is currently low, and this could help maintain public confidence at little additional cost to the private sector Michael Izza, chief executive of the ICAEW “We understand their concern is to reduce the regulatory burden on business, and this is an aim we fully support. We just believe the savings would be better made in less potentially damaging areas,” said Mr Izza, who has in the past chaired a number of Treasury working groups. Bodies such as the Association of Chartered Certified Accountants have said raising the threshold to £10.2m would risk the livelihoods of many small and sole-practitioner auditors. The size of a “small business” has been growing steadily in Britain, from a yearly turnover of £1m in 1993 to £6.5m in 2009, the last time the audit threshold was raised. According to the Office for National Statistics, more than 98pc of all businesses had revenues of less than £10m a year in 2014. The CBI, Britain’s biggest lobby group, meanwhile, is welcoming the drive to reduce the regulatory burden. “It’s important that the Government helps reduce the burden of red tape for small firms, allowing them to concentrate their time and energy on scaling up,” said Tom Thackray, acting CBI director for competitive markets.
Accountancy body, the Institute of Chartered Accountants in England and Wales (ICAEW), warns that new rules designed to cut red tape for small businesses will increase the risk of crimes going undetected and, thereby, reduce the public's trust in UK business. UK Government's Businesses Secretary, Sajid Javid's push to cut back regulation for British companies is predicted to lift more than 98pc companies out of audit requirements, meaning that 98% of UK businesses will not have to carry out a full audit, however the ICAEW says it leaves companies vulnerable to fraud, money-laundering and inaccurate tax bills.