LLP Consent Letter – Abridged Accounts
Small LLPs (“small” as defined by the Companies Act 2006 and applied to LLPs by relevant regulations) have the option to prepare and file abridged accounts if all the members unanimously consent to it. To qualify as “small”, at least two of the following qualifying conditions must be met:
- annual turnover must not be more than £10.2 million;
- balance sheet total must not be more than £5.1 million; and
- average number of employees must not be more than 50.
This letter is the form of correspondence that a designated member in a small LLP may wish to send to the LLP’s members explaining abridged accounts and seeking their consent to the abridgement. This letter should be sent with a forma reply slip; this will encourage and assist members in responding as promptly as possible to the LLP’s request for consent. Our template pro forma reply slip can be accessed in this subfolder.
The relevant regulations introduced the concept of abridged accounts to align LLPs with the regime in place and available for small companies. Abridged accounts are simplified accounts with a balance sheet containing a subset of the information that is included in a full balance sheet and likewise an abridged profit and loss account. The decision to abridge all or part of the accounts must be agreed by all the members.
Consent must be obtained each year and can only be made in respect of the preceding financial year. A continuing authority is not permitted. Consent should be obtained after the year end but before the financial statements are approved.
Abbreviated accounts may no longer be produced by LLPs meaning that LLPs must prepare and file the same set of accounts for its members as for the public record. LLPs must decide at the point they are preparing their accounts whether or not to abridge them (or prepare micro entity accounts if they are within the relevant threshold).
This letter is in open format. Either enter the requisite details in the highlighted fields or adjust the wording to suit your purposes.
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