{"id":34925,"date":"2024-07-29T18:13:58","date_gmt":"2024-07-29T17:13:58","guid":{"rendered":"https:\/\/taxfix.com\/en-uk\/?p=34925"},"modified":"2025-10-07T11:00:38","modified_gmt":"2025-10-07T10:00:38","slug":"what-is-a-directors-report","status":"publish","type":"post","link":"https:\/\/taxfix.com\/en-uk\/limited-companies\/what-is-a-directors-report\/","title":{"rendered":"What is a directors’ report?"},"content":{"rendered":"\n

You might have heard of a directors’ report, but what exactly is it and why does it matter? <\/p>\n\n\n\n

A directors’ report is a document that gives shareholders<\/a> a peek into your company. It covers your activities over the last year, any challenges faced, and your plans for the future.<\/p>\n\n\n\n

While it\u2019s a requirement for some companies, not everyone needs to file one. Let\u2019s dive into what a directors’ report is and who needs to prepare and file it.<\/p>\n\n\n\n

Who needs to file one?<\/h2>\n\n\n\n

First things first, who\u2019s responsible for this report? If you\u2019re a company director<\/a>, it\u2019s your job to put this report together each year.<\/p>\n\n\n\n

According to the Companies Act 2006, this is a legal requirement that helps to make sure companies’ stay transparent and accountable.<\/p>\n\n\n<\/div> \n\n

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Not every company needs to file a directors’ report<\/strong>. Small companies, also known as micro-entities, are often exempt. Your company is considered a micro-entity if it meets at least two of the following criteria:<\/span><\/p>\n

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  1. Your turnover doesn\u2019t exceed \u00a3623,000<\/span><\/li>\n
  2. Your balance sheet total doesn\u2019t exceed \u00a3316,000<\/span><\/li>\n
  3. You have no more than 10 employees<\/span><\/li>\n<\/ol>\n

    If you don\u2019t meet at least two of these<\/span>, you\u2019ll need to file a directors’ report annually.<\/span><\/p>\n\n <\/div>\n<\/div> \n\n

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    So, what\u2019s the purpose of a directors’ report?<\/h3>\n\n\n\n

    Essentially, it keeps everyone in the loop. Especially shareholders who want to know how their investment is doing. It outlines your financial position, how you\u2019re doing compared to competitors, and your plans for the future.<\/p>\n\n\n\n

    Let\u2019s take a closer look at what\u2019s included.<\/p>\n\n\n\n

    Here\u2019s what to include in your report:<\/h2>\n\n\n\n

    Your directors’ report should start with:<\/p>\n\n\n\n