What is a Director’s Report?
A director’s report is a requirement under the Companies Act 2006. As a minimum for small companies the director’s report should include the following:
- The names of the directors who served during the accounting period
- The principal activities of the company in the period.
- A statement of the director’s responsibilities in preparing the Director’s report and financial statements, and the use of the small company exemption, if applicable.
- Any financial events which have occurred after the balance sheet date, if these events could have a significant effect on the financial statements.
- The details of a change of registered office address after the balance sheet date.
- The name and signature of the Director signing the accounts.
The requirements differ depending on the size of the company, which larger companies carrying more disclosure responsibilities. For example, companies with over 250 employees, are also required to provide employee-related information, such as:
- A statement on the company’s policy regarding the recruitment, employment, training and development of disabled persons (where the company employs over 250 employees)
- Details of action taken on employee consultation and engagement in the year (where the business employs > 250 employees)
Do I need to file a Director’s Report at Companies House?
Currently a business which falls under the small company regime is not required to file a Director’s report at Companies House. However, it is expected that this will change from the implementation of new legislation, meaning that all companies, regardless of size, will be required to file a Director’s report for any period starting from 1 October 2024.
If you need help with this, or with other advice, then please get in touch with our accounting team.