LLP Consent Letter – Abridged Accounts
Small LLPs (as “small” is defined by the Companies Act 2006 and applied to LLPs by relevant regulations) may prepare and file abridged accounts if all members unanimously consent.
What this letter is for
This template is a letter that a designated member may send to the LLP’s members to explain abridged accounts and to request their unanimous consent to abridge the accounts.
Which LLPs qualify as “small”
To qualify as “small”, at least two of the following 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.
What abridged accounts are
The relevant regulations introduced abridged accounts to align LLPs with the regime available to small companies. Abridged accounts are simplified accounts, with a balance sheet containing a subset of the information included in a full balance sheet and, similarly, an abridged profit and loss account.
The decision to abridge all or part of the accounts must be agreed by all members.
Timing and renewal of member consent
Consent must be obtained each year and can only be given 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.
Note on abbreviated accounts and other options
Abbreviated accounts may no longer be produced by LLPs. This means an LLP must prepare and file the same set of accounts for its members as for the public record.
An LLP must decide, when preparing its accounts, whether to abridge them (or prepare micro-entity accounts if it falls within the relevant threshold).
What else you may need
This letter is intended to be sent with a pro forma reply slip to encourage and assist members in responding promptly. Our template pro forma reply slip is also available in this collection.
LLP Consent Letter – Abridged Accounts is part of Corporate. Just £38.50 + VAT provides unlimited downloads from Corporate for 1 year.